The IRS Is Now 25 Percent Smaller (and, Hopefully, Less Dangerous)
Most of us hate taxes, and for good reason: They’re legalized muggings to support a government that no decent person would want to fund or empower. Ideally, Congress would dramatically slash taxes, make remaining impositions less intrusive, and cut government to match. But while we got a bit of tax relief in the One Big Beautiful Bill, it did little to cut the expense or reach of the state, nor did it reform the byzantine tax code. The good news is that there are fewer tax collectors to enforce the federal government’s demands now that the Internal Revenue Service (IRS) has been reduced by a quarter.
A Smaller Tax Agency
Among the Trump administration’s promises when it took office was “to further decrease the size of the Federal Government.” The Department of Government Efficiency has been part of that effort, and while its actions have been haphazard and often disappointing, it’s scored some wins. Notably, the IRS is dramatically smaller than it was just months ago.
“Since January 2025, the IRS has taken steps to reduce the size of its workforce in compliance with the President’s executive orders and Office of Personnel Management (OPM) guidance. Employees were encouraged to take deferred resignation program (DRP) offers or other incentives to separate and avoid possible Reduction in Force (RIF) actions,” according to a July report from the Treasury Inspector General for Tax Administration. “According to IRS records, 25,386 employees separated, took a DRP offer, or used some other incentive to leave. Another 294 employees were sent termination notices due to RIF actions. These departures represent 25 percent of the IRS’s workforce and impact certain business units more than others.”
Overall, IRS staffing went from about 103,000 in February 2025 to 77,428 as of the publication of the report. Of particular interest, tax examiners who ensure compliance in federal tax returns, and revenue agents who audit individuals and businesses, saw 27 percent and 26 percent reductions, respectively, in their ranks. That’s a lot fewer federal employees pawing through people’s finances looking for rule violations to punish and money to steal for the government’s use.
A Less Capable IRS, We Hope
In April, the now supporter-funded PBS reported on declining morale at the tax agency. It also warned of “fears that Trump will weaponize the IRS against his enemies—and reward his friends.” That’s fair given the IRS’s extensive history of politicization for its own purposes and for use as a weapon by those in power. Bu
Article from Reason.com
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