IRS drafting plans to slash as much as half of its 90,000-person workforce leaving agency 'dysfunctional,' AP sources say - PBS NewsHour

The Internal Revenue Service (IRS), the U.S. government agency responsible for tax collection and tax law enforcement, is reportedly drafting plans to massively cut its workforce, as per sources familiar with the matter. These reductions could potentially see the agency lose as much as half of its current 90,000-person workforce. This information comes amidst growing concerns over the agency's capacity to fulfill its obligations and maintain operational efficiency in the face of such drastic staff cuts.

Former IRS Commissioner, John Koskinen, has openly expressed his concerns on the matter, stating that such a sizeable reduction in force could render the IRS "dysfunctional". His statement underscores the potential implications and challenges that the IRS, and by extension the U.S. government, might face if these plans were to materialize. The potentially debilitating impact on the agency's functionality puts a spotlight on the gravity of the situation.

This developing story raises numerous questions about the rationale behind such a decision, the preparedness of the agency to cope with this change, and the potential effects on the American taxpayers. As the IRS grapples with these issues, the public, too, awaits clarity on what these changes could mean for them and the nation's economy at large.

According to former IRS Commissioner, John Koskinen, a workforce reduction of tens of thousands would essentially render the Internal Revenue Service dysfunctional. The IRS currently has a workforce of approximately 90,000 people. The potential reduction of this workforce by as much as half would significantly strain the agency's ability to effectively carry out its responsibilities. This includes processing tax returns, handling audits and investigations, and providing assistance to taxpayers.

This drastic reduction in staff is anticipated to have extensive repercussions not only for the agency but also for the taxpayers who rely on the IRS for various services. The agency's ability to process tax returns in a timely manner, a critical function especially during tax season, could be severely impacted. Additionally, the IRS's capacity to handle audits and investigations could be compromised, potentially leading to an increase in tax evasion and fraud.

Furthermore, the reduction in staff could lead to a decrease in the quality of taxpayer services. The IRS also provides assistance and guidance to taxpayers, a function that could be compromised with a reduced workforce. This could lead to taxpayers facing greater difficulty in understanding and complying with tax laws, potentially increasing the risk of unintentional non-compliance. The potential consequences of this reduction in force would therefore extend beyond the agency's internal operations and could have a significant impact on taxpayers across the country.

The proposed workforce reduction would not only impact the employees of the IRS but also the American taxpayers. The IRS is responsible for processing tax returns, auditing businesses and individuals, and enforcing the country's tax laws. A significant reduction in its workforce could potentially lead to delays in tax return processing and an overall decrease in service efficiency.

Moreover, the agency's ability to conduct audits and investigations could be severely hampered. This could lead to a decrease in revenue collection, as fewer audits tend to lead to less detection of tax fraud. The IRS estimates that it misses out on about $406 billion a year in taxes that it is owed, largely due to lack of enforcement resources. A reduction in workforce could exacerbate this issue.

There are also concerns about how the IRS will manage to keep up with the ever-evolving tax laws and regulations without a fully staffed workforce. The recent changes in the tax laws due to the Tax Cuts and Jobs Act have already put a strain on the IRS. The proposed reduction in force could make it even more difficult for the agency to adapt to new laws and regulations.

John Koskinen, a former IRS Commissioner, warned that such a drastic cut in the workforce could render the IRS "dysfunctional". He further added that the IRS is already stretched thin, and any further reduction in its workforce could cripple the agency's ability to effectively carry out its duties.

While IRS officials are drafting plans for this massive workforce reduction, experts in the field are voicing their concerns about the potential consequences. As the IRS is the primary federal agency responsible for tax collection and tax law enforcement, such drastic cuts could significantly hamper its ability to perform these critical functions.

According to Michael Brostek, a former director at the Government Accountability Office who oversaw tax issues, "The IRS's workforce is already stretched thin. If it loses a substantial portion of its workforce, it may not be able to effectively enforce tax laws or ensure that taxpayers are paying their fair share. This could lead to a decrease in tax revenue and an increase in tax evasion."

Indeed, the IRS has been underfunded and understaffed for years, and this proposed cut would only exacerbate these issues. The consequences would not only be felt by the agency, but would likely ripple throughout the economy as well.

In conclusion, the proposed plans to reduce the IRS workforce by as much as half could significantly impact the agency's ability to function effectively. As former IRS Commissioner John Koskinen has warned, such a dramatic reduction would likely render the IRS "dysfunctional."

The implications of this plan extend beyond the IRS, potentially affecting millions of Americans who rely on the agency for tax-related services. However, the final decision on whether the plan will be implemented is yet to be made, and it will undoubtedly be followed closely by many.

This issue serves as a stark reminder of the delicate balance that must be maintained in managing public resources. While budget cuts and efficiency measures are often necessary, they must be managed carefully to ensure that they do not undermine the ability of essential institutions to serve the public effectively.

Source: https://www.pbs.org/newshour/politics/irs-drafting-plans-to-slash-as-much-as-half-of-its-90000-person-workforce-leaving-agency-dysfunctional-ap-sources-say