Brace Yourself: IRS 25% Staff Cuts Mean Big Trouble for Tax Pros and Clients

A hobbled agency could have trouble meeting revenue goals and basic taxpayer services.

Taxpayer Advocate Collins: “Significant challenges.”

By CPA Trendlines Research

The Internal Revenue Service is reeling from massive Trump Administration staffing cuts, which have left the agency knee-capped with nearly 26,500 fewer employees, raising red flags for tax professionals about service quality, enforcement consistency and case resolution delays.

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The IRS has lost 25.9 percent of its workforce since Jan. 25, 2025, with headcount dropping from 102,113 to 75,702 as of June 4, 2025. Most of the cuts come from voluntary separation incentives rather than layoffs, according to the National Taxpayer Advocate 2026 Objectives Report to Congress.

Yet, the result is the same: fewer agents, auditors, and call center staff, just as tax complexity and demand for support are expected to increase.