IRS Faces Turmoil Amid Downsizing and Leadership Instability
What’s happening:
Massive Workforce Reductions: Approximately 30,000 IRS employees have accepted buyouts or been laid off in 2025. These cuts are part of the Department of Government Efficiency's (DOGE) initiative to streamline government operations.
Leadership Turnover: The IRS has experienced significant leadership instability, with four commissioners departing in quick succession. Former Deputy Secretary of the Treasury was appointed as the acting commissioner on April 18, replacing a predecessor who served for less than a week.
Operational Challenges: The combination of workforce reductions and leadership changes has led to concerns about the IRS's ability to effectively manage the tax season. Taxpayers may experience delays in processing and customer service, and the agency's capacity to enforce tax compliance could be compromised.
With the IRS undergoing significant upheaval—due to DOGE's downsizing efforts and a series of leadership changes—some concerns have been raised. Mainly to do with the IRS’ ability to effectively serve taxpayers during the critical tax season.
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