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IRS Faces Staffing Shortfall After Layoffs

Published Apr 7, 2026

Unknown
Employees Affected
25.0%
Percentage

The IRS is experiencing significant staffing challenges in taxpayer-facing roles, particularly in customer service, following staff reductions. A draft government report highlights the agency's struggle to meet staffing targets during the tax-filing season, potentially impacting the delivery of new tax breaks. The report suggests that previous staff cuts are contributing to the current difficulties.

What happened

The IRS has fallen short of its staffing goals for customer service positions during the tax-filing season. The agency is backfilling open positions with employees from other divisions, who require months of training.

How many employees affected

The Trump administration pushed out 25 percent of the agency’s staff through mass layoffs and early retirements. The report does not specify the exact number of current employees affected by the shortfall, but notes the agency only brought on 21 percent of the 2,200 people hired for taxpayer-facing roles in its submission processing unit.

Why layoffs happened

The staff reductions are attributed to cuts made by the Trump administration.

Company background

The IRS is the revenue service of the United States federal government, responsible for collecting taxes and administering the federal tax laws enacted by Congress. It is a bureau of the Department of the Treasury and is led by the Commissioner of Internal Revenue.

Industry impact

The staffing shortage may lead to longer wait times for taxpayers seeking assistance and could potentially affect the smooth implementation of new tax programs. The IRS reduced its level of service goals from 85 percent to 70 percent to compensate for the staff reductions.

What's next

The Treasury Inspector General for Tax Administration is reviewing the personnel crunch. The IRS is attempting to improve its technological capabilities and has moved more than 800 people from the chief of staff’s office to submissions processing and account management.

Source: politico.com

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