The IRS aims for substantial modernization within the next two years, yet this ambitious goal is overshadowed by significant workforce cuts and ongoing uncertainties. Acting IRS Commissioner Michael Faulkender emphasizes a definitive timeline for modernization, acknowledging previous failures. The IRS has lost over 20% of its workforce, including vital IT personnel, which complicates the task ahead for newly confirmed Commissioner Billy Long. Additionally, budget proposals indicate a drastic reduction in IT staff, posing further challenges to effective modernization efforts.
It's unfortunately the case that for the last 35 years, we have been five years away from the IRS being modernized. We will not say that in the 36th year.
We are working to complete the vast majority of our modernization efforts in the next two-to-three years. The IRS is allocating resources to make sure that modernization is accelerated.
The IRS budget lists a nearly 60% reduction to IT and support staff in the coming fiscal year from 10,371 people in 2025 to 4,250 employees.
The tax agency has already shed over 20% of its workforce since President Donald Trump took office. That includes about 2,000 technology employees.
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