A lot of discussion circulates around the Internal Revenue Service (IRS) and its staffing, particularly with recent funding increases. It's a complex topic with various roles within the IRS, and the numbers can be interpreted in different ways. Let's delve into how many IRS personnel, including agents, are selected each year and what factors influence these figures.
Understanding the IRS Workforce: More Than Just "Agents"
Before we dive into the numbers, it's crucial to understand that the term "IRS agent" is often used broadly, but the IRS workforce comprises various specialized roles. These include:
- Revenue Agents: These are auditors who examine tax returns and financial records to ensure compliance with tax laws. They primarily handle civil tax cases.
- Revenue Officers: These professionals focus on collecting delinquent taxes and securing unfiled returns. They often work directly with taxpayers on payment plans and enforcement actions.
- Special Agents (IRS Criminal Investigation - CI): These are law enforcement officers who investigate criminal violations of tax law and related financial crimes, such as money laundering, public corruption, and cybercrimes. They carry firearms and make arrests.
- Taxpayer Service Representatives: These individuals assist taxpayers with questions, provide guidance on tax laws, and help with filing issues.
- IT Professionals, Attorneys, Analysts, and Administrative Staff: A vast array of other professionals are essential to the IRS's operations, from modernizing its systems to providing legal counsel and managing human resources.
So, when we talk about "how many IRS are selected every year," we're generally referring to the total number of new hires across all these diverse roles, not just enforcement agents.
A Step-by-Step Guide to Understanding IRS Hiring Trends
Are you curious about the specific numbers and the factors that influence them? Let's break it down!
Step 1: Engage with the Data – What's Your Initial Impression?
Before we dig into the details, what's your current perception of IRS hiring? Have you heard about massive hiring initiatives, or do you believe the agency is shrinking? Take a moment to reflect on what you think the numbers might show before proceeding. This will help you contextualize the information we're about to explore.
Step 2: Historical Context: Understanding Past Trends
The IRS workforce has seen significant fluctuations over the years. For a long time, the agency experienced budget cuts and a shrinking workforce.
- Decline in Workforce: From a peak of over 116,000 full-time equivalent (FTE) positions in 1992, the IRS workforce steadily declined to approximately 78,661 FTEs in Fiscal Year (FY) 2021. This meant fewer staff to handle taxpayer services and enforcement activities.
- Impact of Reductions: These reductions led to challenges like lower taxpayer assistance rates, longer processing times, and a decrease in enforcement activities, raising concerns about tax compliance.
Step 3: The Inflation Reduction Act (IRA) and its Impact
A significant shift occurred with the passage of the Inflation Reduction Act (IRA) in August 2022. This legislation provided the IRS with $80 billion in additional funding over 10 years. The primary goals of this funding are to:
- Improve Taxpayer Service: Enhance customer service by increasing staffing at Taxpayer Assistance Centers and improving phone support.
- Modernize Technology: Upgrade outdated IT systems to improve efficiency and data security.
- Increase Enforcement: Boost efforts to ensure high-income individuals, large corporations, and complex partnerships pay their fair share of taxes.
Step 4: Projected Hiring Numbers and Real-World Outcomes
The $80 billion funding was initially projected to enable the IRS to hire an estimated 86,852 full-time equivalent (FTE) employees over the next decade. It's important to clarify that this is a projected total over ten years, not an annual figure for "new agents" alone.
- Short-Term Targets: In the immediate aftermath of the IRA, the IRS set aggressive hiring targets. For instance, the administration planned to bring on approximately 10,000 new employees in FY 2023 and nearly 20,000 hires in FY 2024.
- Actual Hiring in Recent Years:
- From October 1, 2021, to September 30, 2023 (FY 2022 and FY 2023 combined), the IRS processed nearly 53,000 new hires. This included both external hires and internal movements.
- In FY 2022, there were almost 22,000 new hires, and in FY 2023, approximately 31,000 new hires, representing a substantial 41% increase in hiring between those two years.
- As of the end of FY 2023, the IRS workforce in pay status reached approximately 89,800 employees, up from around 80,200 in FY 2020.
- Challenges in Meeting Goals: Despite the significant increase, the IRS has faced challenges in hitting all its hiring targets.
- For example, in FY 2023, the IRS had planned to bring on 3,833 revenue agents but struggled to recruit them.
- A significant portion of new hires (36% in FY 2022 and 2023) experienced delays beyond the Office of Personnel Management's 80-calendar day time-to-hire target due to workload, miscommunication, and security checks.
Step 5: Focus on Specific Roles: Enforcement vs. Taxpayer Services
While much of the public discussion focuses on "agents," a substantial portion of the new hires are aimed at improving taxpayer services.
- Taxpayer Services: A significant allocation of IRA funds is dedicated to taxpayer services. The IRS has already brought on thousands of new customer service employees, leading to a dramatic improvement in call answer rates. The goal is to make the IRS a "world-class customer service operation."
- Enforcement Staffing: The IRA also aims to boost enforcement staffing. The IRS increased its enforcement staffing from 33,183 FTE in FY 2023 to a targeted 37,004 FTE in FY 2025. This includes hiring more Revenue Agents, Revenue Officers, and Special Agents.
- Special Agents (CI): The IRS Criminal Investigation (CI) unit saw its workforce grow by nearly 11% in FY 2024, reaching almost 3,500 employees, including nearly 2,300 special agents. This is the highest level in almost a decade for CI.
Step 6: Attrition and Replacement Hires
It's vital to remember that not all new hires represent a net increase in the workforce. A significant portion of the hiring is to backfill existing vacancies and replace employees who retire or leave the agency.
- High Retirement Eligibility: A large percentage of the current IRS workforce is eligible for retirement in the coming years. For example, an estimated 63% of the workforce was eligible to retire within six years as of a recent report. This means a continuous need for new hires just to maintain current staffing levels.
Step 7: Looking Ahead: Future Projections
The IRS continues its multi-year hiring effort under the IRA. The specific number of individuals selected each year will depend on:
- Budget Allocations: Continued funding levels from Congress.
- Recruitment Success: The ability of the IRS to attract qualified candidates in a competitive job market.
- Attrition Rates: The number of employees leaving the agency.
The overall goal is to rebuild the IRS to provide better service to taxpayers and ensure fair tax administration.
10 Related FAQ Questions
Here are 10 frequently asked questions with quick answers related to IRS hiring:
How to many IRS employees are there in total? As of the end of FY 2023, the IRS had approximately 89,800 employees in pay status.
How to many "agents" is the IRS hiring with the new funding? The initial projection under the Inflation Reduction Act was to hire approximately 87,000 full-time equivalent (FTE) employees across all roles over a 10-year period, not just "agents," and much of it is for attrition replacement.
How to many new IRS employees were hired in the last two fiscal years (FY 2022-2023)? Between FY 2022 and FY 2023, the IRS processed nearly 53,000 new hires.
How to much of the new IRS funding is for enforcement? While a significant portion of the new funding supports enforcement, a substantial amount is also allocated to taxpayer services and technology modernization. Enforcement staffing is targeted to increase to 37,004 FTE by FY 2025.
How to many IRS Special Agents (Criminal Investigation) are there? As of FY 2024, the IRS Criminal Investigation (CI) unit has nearly 2,300 special agents.
How to long does it take for the IRS to hire new employees? The IRS aims for an 80-day time-to-hire target, but many hires, particularly external ones, can take longer due to various factors like security checks and workload.
How to does the IRS recruit new employees? The IRS recruits through various channels, including online job postings, career fairs, and partnerships with educational institutions.
How to qualify for an IRS "agent" position? Qualifications vary by position, but generally, revenue agent roles require a background in accounting or finance, while special agent roles often require a mix of accounting/finance and law enforcement or criminal justice experience.
How to are IRS hiring priorities determined? Hiring priorities are determined by the agency's strategic goals, including improving taxpayer service, modernizing technology, and enhancing enforcement capabilities, often influenced by legislative mandates and budget allocations.
How to will the increased IRS staffing impact average taxpayers? The goal is for increased staffing to lead to improved taxpayer services (e.g., better phone assistance, faster processing) and more targeted enforcement efforts on high-income individuals and complex cases, rather than a broad increase in audits for average taxpayers.
