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IRS Leadership Turnover and Workforce Cuts Raise Concerns Over Agency Stability

The IRS faces leadership instability, a 27% workforce reduction, and legal challenges over data-sharing policies under the Trump administration.

FILE - The Internal Revenue Service 1040 tax form for 2022 is seen on April 17, 2023. (AP Photo/Jon Elswick, File)
FILE - This March 22, 2013, file photo shows the exterior of the Internal Revenue Service building in Washington. (AP Photo/Susan Walsh, File)
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Overview

  • The IRS is now on its fourth acting commissioner in four months, with Michael Faulkender currently serving pending Senate confirmation of Trump nominee Billy Long.
  • The agency has lost approximately 27,000 employees this year due to 7,000 layoffs and 20,000 buyouts initiated by the Department of Government Efficiency.
  • A data-sharing agreement allowing ICE access to taxpayer information is under federal litigation, with a judge expected to rule on a preliminary injunction soon.
  • The administration is reportedly considering revoking the tax-exempt status of Harvard University and other organizations critical of its policies, raising concerns about politicized enforcement.
  • Experts warn that leadership instability and workforce reductions could undermine the IRS's ability to provide taxpayer services and collect federal revenue effectively.