IRS Layoffs Threaten Crackdown on Wealthy Tax Evasion

The termination of 7,000 IRS workers, including compliance staff, raises concerns about tax enforcement and revenue collection.

The IRS recently laid off approximately 7% of its workforce, including 7,000 probationary employees, many in enforcement roles, due to federal spending cuts by the Department of Government Efficiency.
Democrats warn the layoffs could hinder efforts to audit high-income individuals and large corporations, potentially allowing 'wealthy tax dodgers' to evade taxes.
The layoffs come after the 2022 Inflation Reduction Act allocated $80 billion to strengthen IRS enforcement, which recovered $1.3 billion in unpaid taxes from wealthy taxpayers and corporations.
Critics argue the staffing cuts will reverse recent improvements in taxpayer services, including reduced phone wait times during tax season and improved audit capabilities for complex cases.
Republican lawmakers have opposed increased IRS funding, citing concerns over middle-class harassment, and have partially rolled back the agency’s 2022 funding boost.