28,000 IRS Workers GONE — What Happens Now?

28K IRS AXED

The IRS enters the 2026 tax filing season crippled by a devastating 27% workforce reduction and leadership chaos, threatening delays for 164 million Americans expecting timely refunds while the agency scrambles to implement complex new tax laws with skeleton crews.

Story Snapshot

IRS workforce slashed from 102,000 to 74,000 employees in one year, returning to pre-pandemic staffing levels despite increased demands
Trump administration’s Department of Government Efficiency drove mass buyouts targeting taxpayer services, IT, and enforcement divisions
Federal watchdogs warn of refund delays, phone service failures, and mounting backlogs as 28 top IRS leadership positions remain vacant
New retroactive tax law changes from H.R. 1 compound crisis, requiring extensive programming updates with insufficient staff to implement
Seasonal hiring fell 34% short of targets, with new workers receiving only basic training for call screening instead of comprehensive taxpayer assistance

Trump Administration Cuts Gut IRS Operations

The IRS workforce plummeted from 102,000 employees in January 2025 to just 74,000 by December, erasing gains made under the previous administration’s Inflation Reduction Act funding.

The Department of Government Efficiency, led by Elon Musk, orchestrated this dramatic reduction through voluntary buyouts and terminations that primarily targeted critical taxpayer services, small business divisions, and information technology departments.

This represents a return to 2019 staffing levels when the agency faced chronic backlogs and service failures. The timing could not be worse, as 164 million tax returns are expected by April 15, 2026.

The national taxpayer advocate is cautioning that the 2026 tax filing season is likely to present challenges for taxpayers who encounter problems with filing their taxes given the exodus of IRS workers since the start of the Trump administration. https://t.co/chWHlnlvfu

— World News Tonight (@ABCWorldNews) January 28, 2026

Watchdog Reports Sound Alarm on Service Collapse

National Taxpayer Advocate Erin M. Collins and the Treasury Inspector General for Tax Administration issued stark warnings on January 28, 2026, just two days after the filing season opened. Collins noted that while 2025 was successful with full staffing and an 87% phone service level, 2026 presents a “markedly different” landscape.

The reports document how delayed seasonal hiring—approved four months late in August 2025—resulted in only 2,300 of 3,500 planned hires, a 66% completion rate.

These new employees received minimal training, limiting them to basic call screening rather than resolving complex taxpayer issues that working Americans desperately need to be addressed.

Budget Slashed While Workload Increases

The FY2026 budget gutted IRS funding by 37%, cutting $8.3 billion to bring total resources down to $14.2 billion, and rescinded $59 billion of the $80 billion allocated under the Inflation Reduction Act.

Enforcement staff dropped by 31%, to 22,303 employees, and technical support collapsed by 59%, to just 4,250 workers. While taxpayer services positions increased on paper by 48% to 34,044, the actual workforce numbers tell a different story, as exits continue to outpace hiring.

This represents a strategic shift away from aggressive auditing of Americans while leaving ordinary taxpayers unable to get help navigating an increasingly complex system.

Leadership Vacuum Compounds Operational Crisis

As of November 2025, 28 of the IRS’s top leadership positions sat vacant or filled by acting officials, creating a coordination nightmare. Treasury Secretary Scott Bessent simultaneously serves as acting IRS Commissioner, a dual role that consolidates power but spreads attention thin during a critical period.

The agency faces mounting backlogs in processing amended returns and correspondence while attempting to implement retroactive changes from H.R. 1, the One Big Beautiful Bill Act, signed by President Trump in the summer of 2025.

These legislative changes require extensive form updates, instruction revisions, and taxpayer education—all with a workforce that has lost institutional knowledge through mass departures of experienced personnel.

Taxpayers Face Delays and Service Degradation

The projected phone service level of 85% represents a decline from 2025’s 87%, but this figure may prove optimistic given the staffing realities and training deficiencies. Americans who call for help will likely encounter longer wait times, less knowledgeable representatives, and more unresolved issues that require callbacks that may never come.

Refund delays appear inevitable as backlogs grow, potentially triggering IRS interest payments on late refunds that cost taxpayers nothing but signal systemic failure.

Low-income families, who depend on rapid refunds for essential expenses, face the harshest consequences, while small businesses needing guidance on complex deductions are left abandoned by an agency stripped of the capacity to serve them effectively.

Constitutional Concerns and Government Overreach

While reducing bloated bureaucracy aligns with conservative principles of limited government, the execution raises concerns about basic governmental competence and the protection of citizens’ property rights through fair tax administration.

The dramatic cuts target frontline services that help Americans navigate an oppressive tax code, while enforcement capabilities remain substantial enough to threaten audits but inadequate to provide timely guidance. This creates a dangerous asymmetry where the government maintains its power to punish but abandons its responsibility to assist.

The loss of experienced personnel and leadership stability undermines the rule of law by making consistent, predictable tax administration impossible, forcing citizens to guess at compliance requirements without reliable official guidance.