IRS Examiners and Agents Slammed in Staffing Cuts, Watchdog Says

IRS tax examiners and revenue agents—employees who review returns and conduct audits—were among the hardest hit by recent cuts at the agency, a watchdog said Tuesday, echoing prior reports.

More than 25,000 employees left the agency between January and May through deferred resignations, voluntary retirements, or layoffs, according to an analysis of IRS records from the Treasury Inspector General for Tax Administration. TIGTA’s report, dated July 18, found that more than 4,000 tax examiners and 3,000 revenue agents separated since January.

• About a third of staff cuts came from the office handling small business and self-employed taxpayers, in line with a report from National Taxpayer Advocate Erin Collins.
• States in the South, Southwest, and Northeast were among the most affected by staff reductions, with the IRS workforce declining more than 30% from some states in those areas.
• TIGTA noted the agency slashed 48 senior positions in its Information Technology Department in March, with about half of those employees still on leave and half already separated.
• The report also found that as of May, 294 employees received reduction-in-force notices. The breakdown of workers was 179 in the Office of Civil Rights and Compliance, 106 in the Taxpayer Experience Office, and nine in the Taxpayer Service’s Office of Equity, Diversity, and Inclusion.