The recent layoffs of approximately 7,000 newly hired IRS employees are set to undermine the agency's ability to pursue high-wealth tax evaders and could negatively impact revenue collection. Experts warn that this move may compromise customer service and delay tax return processing amid approaching tax deadlines. The cuts are part of a broader effort to downsize the federal workforce initiated under the Department of Government Efficiency led by Elon Musk. Critics point out that reduced resources will hinder the IRS's effectiveness in enforcing tax compliance among wealthy individuals.
The IRS layoffs, one of the largest purges of probationary workers this year across the government, could also hurt customer service and tax return processing during tax season this year.
When you underpay and understaff the IRS, the agency doesn't have the power or the resources it needs to go after wealthy tax evaders with their high priced lawyers.
The upheaval comes less than two months before the tax filing deadline and as the Department of Government Efficiency under Trump adviser Elon Musk seeks to shrink the size of the federal workforce.
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