IRS Audit Revenue Falls 35% to $6.5 Billion After 30% Staff Cut
Updated
Updated · The New York Times · Aug 31
IRS Audit Revenue Falls 35% to $6.5 Billion After 30% Staff Cut
1 articles · Updated · The New York Times · Aug 31
Summary
$6.5 billion in IRS audit revenue was collected in fiscal 2025, down from $10 billion a year earlier, in one of the first official measures of the impact of Trump-era workforce cuts.
TIGTA said the agency lost roughly 30% of staff dedicated to audits, began 30% fewer individual audits, and one major division paused new cases for six months over staffing uncertainty.
Audit work is time-intensive and can take years, suggesting the full budget hit from the staffing and funding rollback may not yet be visible.
Other enforcement changed less sharply, with revenue from mailed notices and phone calls roughly steady after some collection programs restarted in 2024.
Overall tax receipts still rose to a record $5.3 trillion, but the report lands as the IRS still faces an estimated $700 billion in unpaid taxes each year.