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IRS Has Shed More Than 11% Of Its Workforce With Thousands More Cuts On The Way

  • As of March 2025, the IRS reduced its workforce by approximately 11 percent, terminating over 11,400 employees nationwide.
  • These reductions followed a February 2025 executive order initiating large-scale layoffs and a hiring freeze, though legal challenges have delayed some terminations.
  • The cuts disproportionately affected revenue agents and officers, with 31 percent of revenue agents and 18 percent of revenue officers terminated, despite their roles in tax collection and auditing.
  • Treasury Secretary Scott Bessent indicated that advancements in IT and the current surge in AI technology will help maintain and potentially improve tax collection efficiency, contributing to cost reductions through improved automation and streamlined processes.
  • The IRS plans further workforce cuts while relying on AI and improved technology to maintain robust tax collection amid projected eliminations of up to 40,000 jobs.
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Forbes broke the news in United States on Monday, May 5, 2025.
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