How many people did the IRS just hire? Let's break it down!
Are you wondering about the recent shifts in the IRS workforce? Perhaps you've heard whispers of increased hiring, or maybe concerns about potential layoffs. Understanding the dynamics of the IRS's staffing is crucial, as it directly impacts everything from taxpayer services to tax enforcement. Let's embark on a detailed journey to uncover the truth about recent IRS hiring and the factors influencing its workforce.
QuickTip: Highlight useful points as you read.
Step 1: Understanding the Context – The Inflation Reduction Act's Role
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Engage with the process: Before we dive into the numbers, let's consider why the IRS has been in the news for its staffing levels. Have you heard about the Inflation Reduction Act (IRA)? This landmark legislation, signed in August 2022, was a major game-changer for the IRS, providing nearly $80 billion in supplemental funding over a decade.
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The Vision for Transformation: The primary goal of this funding was to transform the IRS. This wasn't just about hiring more people for the sake of it. The agency aimed to:
- Improve Taxpayer Services: This means shorter call wait times, more in-person assistance, and enhanced digital tools like the Direct File system.
- Modernize Antiquated Systems: A significant portion of the funding was earmarked for updating the IRS's decades-old technology infrastructure.
- Increase Compliance and Enforcement: The act sought to improve the IRS's ability to ensure that high-income individuals and large corporations pay their fair share of taxes.
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| How Many People Did The Irs Just Hire |
Step 2: The Recent Hiring Boom (and Subsequent Shifts)
The IRS, empowered by the IRA, embarked on a significant hiring spree.
Tip: Don’t just scroll to the end — the middle counts too.
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Initial Growth: The Biden Administration aimed to increase the IRS workforce from approximately 79,431 to 102,309 personnel. This indeed led to a substantial number of new hires.
- From October 1, 2021, to September 30, 2023, the IRS processed nearly 53,000 new hires. This includes both external recruits and internal reassignments.
- Specifically, in Fiscal Year 2022, there were almost 22,000 new hires, and in Fiscal Year 2023, approximately 31,000 new hires, representing a 41% increase in hiring between those two years.
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Focus Areas for Hiring: The new recruits weren't just general staff; they were strategically placed to address key areas of need.
- Customer Service Representatives: Thousands were hired to fill critical customer service roles to improve phone and in-person assistance.
- Taxpayer Assistance Center (TAC) Staff: Over 700 new employees were sought to help taxpayers directly at TACs across the country, including Individual Taxpayer Advisory Specialists and Initial Assistance Representatives.
- Revenue Agents and Officers: There was a strong focus on hiring more revenue agents (auditors) and revenue officers to bolster compliance efforts, particularly for complex tax cases. For FY 2024, the IRS goal was to hire 5,155 Revenue Agents and 865 Revenue Officers, and as of September 8, 2024, they had reportedly hired 6,144 Revenue Agents and 1,418 Revenue Officers.
- IT Specialists: Modernizing technology requires skilled IT professionals, and the IRS also aimed to bring in expertise in this area.
Step 3: Navigating Workforce Reductions and "Deferred Resignation Programs"
While the IRS initially saw a significant increase in staffing due to the IRA, recent developments, particularly in early 2025, have led to a reversal of some of these gains.
QuickTip: Skim the intro, then dive deeper.
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Budgetary Shifts and Policy Changes: Under new leadership and amidst discussions about budgetary constraints and policy shifts (including rescissions of some IRA funding), the IRS has initiated various workforce reduction efforts.
- The Inflation Reduction Act's funding for the IRS was initially nearly $80 billion, but has been reduced to approximately $57.8 billion due to subsequent legislative actions.
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Deferred Resignation Program (DRP): A key mechanism for these reductions has been the "Deferred Resignation Program" (DRP). This program allows employees to take paid leave for a period before officially leaving the government.
- As of early May 2025, over 20,000 employees had shed through the deferred resignation program, with more significant cuts still expected.
- Reports indicate that as of April 22, 2025, over 23,000 employees applied for the TDRP, and 13,124 were approved.
- An additional 7,000 IRS employees had signed up for deferred resignation with pending approval.
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Impact on Specific Roles: These departures have not been uniform across all departments.
- Approximately 31% of revenue agents separated through the DRP or received termination notices during their probationary period. This represents a significant hit to the IRS's audit capacity.
- Even the IT workforce has seen an impact, with 2,000 technology-focused employees opting into the deferred resignation program, which is about one-quarter of the IRS IT workforce.
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Probationary Employee Terminations and Layoffs: Beyond voluntary programs, the IRS has also taken action to terminate probationary employees and implemented a "reduction in force" (RIF).
- As of March 2025, 7,315 probationary employees received termination notices.
- The IRS has also initiated a RIF for the Office of Civil Rights and Compliance, with plans for a significant reduction in that office.
- Estimates suggest that the agency could shed a total of over 20,000 employees through various means, with some projections indicating a potential reduction of up to 25% of the agency's workforce from its recent peak.
Step 4: The Current State of the IRS Workforce
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Fluctuating Numbers: The total number of IRS employees is currently in flux due to ongoing hiring, attrition, and the recent reduction efforts.
- While the Biden Administration grew the IRS from 79,431 to 102,309 personnel, approximately the same number of employees have since left, primarily through voluntary programs.
- As of the end of Fiscal Year 2023, the IRS had approximately 89,800 employees in pay status.
- As of February 2025, the IRS had approximately 103,000 employees before the significant workforce reductions of early 2025.
- If pending DRP applications and probationary employee removals proceed, the IRS workforce could sit at around 66,000 employees, with additional RIFs potentially bringing the agency below 60,000 workers.
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Challenges and Outlook: These significant shifts present challenges for the IRS, impacting its ability to process returns, provide taxpayer assistance, and conduct enforcement activities.
- Fewer staff can lead to slower refund issuance, reduced in-person assistance, and delays in addressing complex tax issues.
- The loss of experienced auditors could impact the agency's ability to tackle the "tax gap" (the difference between taxes owed and taxes paid).
Step 5: Impact on Taxpayers: What Does This Mean for You?
The changes in IRS staffing have direct implications for taxpayers.
QuickTip: Read with curiosity — ask ‘why’ often.
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Improved Services (Initial Impact of IRA Hiring): With the initial wave of IRA hiring, taxpayers experienced some positive changes:
- Shorter call wait times for phone assistance.
- More calls answered by IRS representatives.
- Expanded in-person services and extended hours at Taxpayer Assistance Centers.
- Improvements in technology, including the successful launch of Direct File, offering free online tax filing for eligible individuals.
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Potential Challenges (Due to Recent Reductions): The recent workforce reductions, however, could reverse some of these gains:
- Longer wait times for phone and in-person support might return.
- Delays in processing returns and refunds, especially for complex cases or mailed returns.
- Reduced availability of knowledgeable IRS employees to assist with intricate tax matters.
- A potential decrease in enforcement activities, particularly for high-income individuals and large corporations, which could impact overall tax compliance.
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Staying Informed: It's more important than ever to stay informed about IRS resources and announcements. The IRS is continually working to adapt to its staffing levels and provide the best possible service under current circumstances.
10 Related FAQ Questions and Quick Answers (Starting with 'How to')
Here are some frequently asked questions related to IRS staffing and taxpayer interactions:
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How to contact the IRS for assistance?
- You can typically reach the IRS by phone through their various toll-free lines for individual or business tax questions. The best times to call are usually early in the morning on weekdays. The IRS website also offers a wealth of information and online tools.
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How to find a Taxpayer Assistance Center (TAC) near me?
- Visit the "Contact Your Local IRS Office" section on the IRS.gov website. You can search by zip code or state to find the nearest TAC, their hours of operation, and services offered. Appointments are often recommended or required.
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How to check the status of my tax refund?
- Use the "Where's My Refund?" tool on IRS.gov or the IRS2Go mobile app. You'll need your Social Security number, filing status, and the exact refund amount shown on your tax return.
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How to understand if my tax return will be audited?
- The IRS selects returns for audit based on various factors, including discrepancies with third-party information, unusually high deductions, or random selection. If your return is selected, the IRS will notify you by mail, not by phone or email.
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How to respond to an IRS notice or letter?
- Read the notice carefully to understand the issue. Most notices will provide clear instructions on what action you need to take, whether it's providing additional information, making a payment, or appealing a decision.
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How to find information on specific tax credits or deductions?
- The IRS.gov website is the primary source for official information on tax credits and deductions. You can use the search bar to find relevant publications, forms, and FAQs.
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How to report a tax scam or identity theft?
- If you suspect a tax scam, report it to the Treasury Inspector General for Tax Administration (TIGTA). If you believe you are a victim of tax-related identity theft, contact the IRS immediately and follow their guidance on identity protection.
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How to access online IRS tools and resources?
- Explore the IRS.gov website. Key tools include "Where's My Refund?", "Get Transcript," "Online Payment Agreement," and various tax forms and publications available for download.
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How to apply for a job at the IRS?
- Job openings at the IRS are posted on USAJOBS.gov, the official employment site for the U.S. federal government. You can search for "Internal Revenue Service" to see available positions.
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How to stay updated on IRS news and changes?
- Subscribe to IRS email updates or follow their official social media channels. You can also regularly check the "Newsroom" section of IRS.gov for press releases and announcements.
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