How a Smaller Federal Workforce Could Affect the IRS Now—and in the Future
Key Points
- President Trump has promised to reduce federal spending, and the U.S. Governor’s service, directed by Tesla CEO Elon Musk, has begun to reduce the number of federal workers to do so. About 7% of IRS labor force is abandoned and the tax season is underway.
- The IRS can narrow down further, as most employees are on the verge of retirement, the federal government offers a buyout option and has a return authorization.
- Tax experts say this could significantly increase the time it takes to process a tax return and negatively affect its accuracy.
President Donald Trump’s move to shrink the federal workforce may be right IRS Tax experts have long believed that employment is insufficient.
One Trump campaign promise is to reduce federal spending, the president is using the United States Ministry of Government EfficiencyTesla CEO Elon Musk Greatly reduce the number of federal workers.
In the IRS, enforce tax laws and collect taxes 7,000 workers have been fired recentlyNearly 7% of the workforce in the agency Washington Post.
Some experts say these changes may lead to increased efficiency of IRS and modern computer systems. Even though The IRS may reduce taxpayer refunds and how to be accurate Tax Return According to Crystal Stranger, registrant and Optic Tax CEO, the processing may be reduced.
“There are a lot of things that come along, too. It’s not all bad, and changing is always painful,” said the stranger. “I just think the timing is a bit challenging because it’s tax season.”
Many factors have been shrinking the IRS workforce
Biden administration tries to Strengthen the IRS Have billions of dollars in funding, including hiring thousands of new employees.
“The IRS is not even fully staffed,” said Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals. “They are still hiring based on the money allocated a few years ago; they can’t fill all the attractions.”
Even before the latest hiring freeze, the IRS has struggled to replace workers who left or retired; the loss in the past two years ranged from 16% to 36%. This suggests the bigger problem is that 63% of IRS workers are eligible to retire within six years, according to taxpayer advocates’ 2024 annual report to Congress.
Strangers say the federal recruitment freeze can also prevent seasonal workers from getting support during the tax season. According to the Government Accountability Office, these workers accounted for 11 to 20% of the agency’s workforce between 2013 and 2022.
Strangers say that because of the roles from seasonal workers, many of these workers, are veterans and personnel Trump Inauguration Day It is pointed out that all institutions must terminate remote work.
“I think many of them really can’t get into the office because they may have other family obligations,” said the stranger. “Some of them are part-time workers with part-time customer support. Some are on the phone line. So, for many, it will be a challenge.”
In order to reduce another attempt to reduce federal workers, the government provides all workers with Buyed. About 75,000 workers, about 3% of the civilian labor force, have accepted it.
IRS workers are not allowed to sign an offer before the tax deadline on April 15. The Office of Personnel Management did not say how many workers plan to do so after the tax season ended. Experts say the acquisition plan could impact future tax seasons and lengthen the process of revising returns or IRS audits this year.