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IRS Faces Operational Turmoil as CIO Resigns During Major Workforce Cuts

Rajiv Uppal’s departure and ongoing layoffs disrupt the agency’s tax season operations, raising concerns about service delays and revenue losses.

A US flag flutters outside the Internal Revenue Service (IRS) building in Washington, DC, in February.
Image
A view of the Internal Revenue Service (IRS) building in Washington, D.C., U.S., April 11, 2025. REUTERS/Jonathan Ernst/File Photo
The Internal Revenue Service (IRS) Building is seen on February 20, 2025 in Washington, DC.

Overview

  • IRS Chief Information Officer Rajiv Uppal announced his resignation effective April 28, 2025, adding to the agency’s leadership exodus during a critical period.
  • The Trump administration and Elon Musk’s Department of Government Efficiency (DOGE) are implementing sweeping cost-cutting measures, including reducing IRS staff by up to 25%.
  • Layoffs, particularly of enforcement personnel, are expected to significantly weaken the IRS’s ability to combat tax evasion, risking billions in lost revenue annually.
  • Taxpayer services are already strained, with reports of longer wait times, delayed refunds, and errors on the agency’s website during the peak tax-filing season.
  • Critics warn that the cuts jeopardize the agency’s modernization efforts, taxpayer confidentiality, and the government’s ability to fund essential programs.