Overview

• The IRS has lost 31% of its auditors, along with over 3,600 revenue agents, 18% of revenue officers, and 10% of tax examiners, following workforce cuts led by Elon Musk's Department of Government Efficiency (DOGE).
• More than 7,300 probationary employees were terminated, over 4,100 accepted resignation offers, and 13,100 took buyouts during the downsizing process.
• Analysts warn that the cuts will significantly hinder the IRS’s ability to enforce tax compliance, with projections of up to $1.6 trillion in lost revenue over the next decade due to reduced audits and increased tax evasion.
• The White House’s fiscal 2026 budget attributes $163 billion in non-defense savings to DOGE cuts, but much of this is offset by a $119 billion boost in military spending and potential revenue losses.
• Critics highlight that Biden-era investments in IRS modernization and enforcement gains have been reversed, with disproportionate impacts on newly hired probationary auditors.