The recent decision by the Department of DOGE to cut 6,700 IRS positions, including 5,000 auditors, is sending ripples through the tax world. With the IRS previously boasting over 100,000 employees, this reduction represents a substantial hit to enforcement capabilities. As a tax accountant, I can’t help but wonder: what does this mean for audits, refund processing times, and overall tax compliance? Former IRS Commissioner Charles Rettig stated, “There should not be any significant impact on current filing this season operations.” While this reassurance is notable, the long-term consequences may tell a different story.
For individual filers, the odds of being audited were already slim—about 1 in a million if nothing substantial is wrong with their return. Even for high earners pulling in over a million dollars, the audit rate was a mere 2.4%. With 5,000 fewer auditors, it’s reasonable to expect even fewer audits. This could mean a relaxation in enforcement, potentially emboldening some taxpayers to take more aggressive positions on deductions and income reporting. However, experienced tax professionals know that a short-staffed IRS may compensate by leveraging automation and artificial intelligence to flag discrepancies more efficiently.
Beyond audits, reducing IRS personnel raises concerns about customer service and refund processing. IRS delays have been a long-standing issue, and fewer employees could exacerbate bottlenecks, particularly for complex returns requiring manual review. While Rettig’s statement is reassuring in the short term, it’s hard to ignore the possibility that fewer staff members will slow down resolution times for disputes, amended returns, and identity verification checks. Taxpayers waiting on refunds—especially those relying on them for financial stability—may be in an even longer queue.
So, what’s the takeaway for taxpayers? Even if audit chances decline, playing fast and loose with tax filings isn’t a wise strategy. The IRS still has tools to detect discrepancies, and audits may become more targeted rather than widespread. This shake-up underscores the importance of proactive tax planning, documentation, and compliance for tax professionals like myself. Whether the Department of DOGE’s decision will create a more efficient IRS or a weakened watchdog remains to be seen—but one thing is clear: the tax landscape is shifting, and we’ll be watching closely.