IRS Audits, Tax Collections Dipped After Workforce Purge (1)

The IRS closed fewer tax return audits and collected billions of dollars less in additional taxes in the wake of steep workforce losses last year.

In 2025, the IRS closed 497,621 tax return audits which resulted in $26.8 billion in recommended additional tax, according to the agency’s data book released Friday. It’s a drop from 2024 when the IRS closed 505,514 tax return audits, resulting in over $29 billion.

The IRS’s exam and audit divisions took big hits after thousands of employees took Elon Musk’s incentives to leave the government last year. The Large Business and International division saw ...