IRS audit revenue plunged following mass layoffs, Treasury watchdog finds

September 1, 2026 / 11:11 AM EDT / CBS News

Revenue from IRS audits plunged 35% in fiscal 2025 as the agency shed thousands of enforcement workers, according to a new report from the Treasury Inspector General for Tax Administration, an agency watchdog.

The IRS collected a total of $6.5 billion from audits in fiscal 2025, which ended Sept. 30, down from $10 billion a year earlier, TIGTA said in its Aug. 26 report.

The group said that the number of IRS employees working in auditing and collections had dropped to 17,517 as of January 2026, a decline of almost 10,000 workers from fiscal 2024. The report added that the impact of the staff reductions may "become more apparent over time."

"These losses present a challenge to improving taxpayer service and enforcing the nation's tax laws," the tax watchdog said. "We are concerned about how staffing losses are impacting the IRS's ability to ensure that it meets department priorities."

The findings come after TIGTA last year found that the IRS lost one-third of its tax auditors during the first three months of the Trump administration. The employment decline was due to cost-cutting efforts by Elon Musk's Department of Government Efficiency…

Original source: https://www.cbsnews.com/entertainment/