Talking Tax IRS Workforce Cuts, Leadership Departures Ripple Across Agency
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May 7, 2025 The IRS is facing significant upheaval as over 20% of its workforce exits, raising concerns about taxpayer services and data security. With a high turnover rate, leadership changes are reshaping the agency, particularly affecting its ability to regulate digital assets. The departures of key executives complicate efforts to maintain compliance and stability. As the IRS leans more on technology to fill gaps, the implications for individual taxpayers and overall revenue collection loom large. Listen for insights into this turbulent period for the agency.
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High IRS Employee Turnover
- Over 20% of IRS employees have left or plan to leave within a short time frame.
- About half of the top 30 IRS leaders have departed, revealing high agency turnover.
Job Security Drives Exits
- Job security fears fuel many workers' decisions to leave the IRS.
- Some leaders exit because they're uncomfortable with tasks asked of them, especially related to legal and ethical concerns.
Data Privacy Conflicts at IRS
- IRS employees face conflicts over data privacy, especially regarding sharing taxpayer info with Homeland Security.
- Leadership was divided on legality and ethics before Treasury agreed to share some data with barriers.