Talking Tax How IRS Attorney Departures Will Prolong Cases, Spur Settlements
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Sep 17, 2025 Michael Rapoport, a senior reporter at Bloomberg Tax, dives into the significant exodus of IRS and DOJ attorneys since 2017. He reveals how this staffing crisis could stretch tax litigation timelines and force the IRS into less favorable settlements. Rapoport explores how job frustrations and uncertain hiring prospects are driving this trend, shedding light on its impact on high-profile cases and taxpayer interactions. His insights provide a crucial understanding of the shifting landscape in tax disputes.
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Widespread Attorney Withdrawals
- More than 170 IRS Office of Chief Counsel attorneys withdrew from Tax Court cases since January, with at least 60 leaving the agency entirely.
- The Office of Chief Counsel lost over 350 employees (about 13%) between January and early June, magnifying case impacts.
Big Cases Are Affected
- High-profile cases involving billions in disputed taxes have seen government attorneys withdraw, including Amgen, Meta, and Abbott Laboratories cases.
- DOJ appellate withdrawals affected appeals for Coca-Cola, 3M and Liberty Global and prompted requests for filing extensions.
Resource Cuts Can Reduce Recoveries
- Reduced legal staff will likely prolong litigation and push the IRS toward settlements to manage caseloads.
- That could force the IRS to accept less favorable terms, effectively leaving money on the table.