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IRS Staff Cuts Deepen to 27% in IT and Services, Fueling Filing Season Concerns

Oversight bodies warn that these reductions could jeopardize next year’s filing season by hampering customer support.

Overview

  • As of late June, the IRS’s IT workforce had fallen by 27 percent, two points higher than in May, leaving just over 2,100 employees.
  • Taxpayer services also shed 27 percent of its personnel, compounding delays in phone and online assistance.
  • Nearly 50 senior IT executives were placed on administrative leave in late March, with 22 still sidelined after 26 departures.
  • Divisions beyond IT were hit hard as well, with small business/self-employed down 35 percent, human capital 28 percent, tax-exempt & government entities 25 percent, and large business & international 19 percent.
  • Treasury Inspector General and National Taxpayer Advocate Erin Collins warn that workforce shortfalls and stalled IT upgrades could jeopardize service and the 2026 tax filing season.