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IRS Audit Revenue Plunged Following Mass Layoffs, Treasury Watchdog Finds

The IRS collected $6.5 billion from audits in fiscal 2025, down 35% after losing roughly 30% of its audit staff, TIGTA said.

Summary by CBS News
IRS audits collected $3.5 billion less in fiscal 2025 as the agency shed thousands of auditors and other agency staffers.

10 Articles

The IRS raised $6.5 billion for audits in fiscal year 2025, 35% less than a year earlier, while its compliance staff lost nearly 10,000 employees. TIGTA warns that the impact of the cuts could be deepened, although the agency is committed to artificial intelligence to detect evasion and fraud. *** Revenue from IRS audits fell 35%, from $10 billion to $6.5 billion, during fiscal year 2025. The staff dedicated to audits and collections dropped to …

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bloombergtax.com broke the news on Monday, August 31, 2026.
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