The Department of Government Efficiency Proposing Cutting IRS Workforce by 20%

Overview

The Department of Government Efficiency (DOGE) is reportedly proposing cutting the Internal Revenue Service’s (IRS) workforce by 20% in a change expected to take effect by May 15, 2025. According to CNN, the cuts would impact an estimated 6,800 employees at the government agency, in addition to the 6,700 probationary employees who have already been let go and 4,700 IRS agents who were given severance packages to retire. However, a recent ruling from US district judge William Alsup ordering federal agencies to reinstate probationary workers terminated due to the DOGE cost-cutting programs could hinder the layoffs if the order is not overturned.

Implications

This proposed reduction in the IRS workforce could have significant implications for tax enforcement and administration in the United States. With fewer employees handling tax-related matters, there may be delays in processing returns, audits, and taxpayer inquiries. This could also result in a decrease in tax revenues collected by the government, as there may be less oversight and enforcement of tax laws.

Furthermore, the job cuts could also impact the morale and workload of remaining IRS employees, as they may be expected to take on additional responsibilities with fewer resources. This could lead to burnout and decreased job satisfaction among IRS staff, which could further exacerbate the challenges facing the agency.

Impact on Individuals

For individuals, the reduction in the IRS workforce could mean longer wait times for tax refunds or responses to tax inquiries. It could also result in less assistance available for individuals seeking help with tax-related issues, potentially leading to confusion and frustration for taxpayers.

Impact on the World

The implications of the proposed cuts to the IRS workforce extend beyond the borders of the United States. As the primary tax collection agency in the country, the IRS plays a crucial role in ensuring compliance with tax laws and regulations. A reduction in its workforce could lead to decreased revenue collection, impacting the government’s ability to fund essential services and programs.

Furthermore, the IRS collaborates with international tax authorities to enforce tax laws and combat tax evasion on a global scale. A smaller IRS workforce could weaken these partnerships and hinder efforts to prevent cross-border tax evasion and fraud, potentially impacting tax systems and revenues worldwide.

Conclusion

Overall, the Department of Government Efficiency’s proposal to cut the IRS workforce by 20% could have far-reaching consequences for tax enforcement, administration, and compliance. It is essential for policymakers to carefully consider the potential impacts of these cuts and ensure that the IRS has the resources and personnel necessary to carry out its critical functions effectively.