Tax Notes Talk Past IRS Commissioners Analyze Agency Changes Under Trump
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Jun 6, 2025 In this engaging discussion, former IRS Commissioners Daniel Werfel and Larry Gibbs share valuable insights into the agency's past and future. They tackle the significant challenges of workforce downsizing and the impact of budget cuts on taxpayer compliance. The conversation also explores the integration of AI in tax administration, emphasizing the delicate balance of automation and security. With a focus on enhancing taxpayer trust, they discuss the need for modernization within the agency amidst evolving operational demands.
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Probationary Employee Layoffs
- The first workers laid off at the IRS were probationary employees due to ease of separation.
- This laid off talent loss makes recruiting public servants harder and disrupts agency stability.
IRS Audit Allocation Logic
- The IRS allocates audit personnel to create credible audit threat across income levels.
- Auditing low-income taxpayers, especially for earned income tax credit, helps establish compliance early.
Risks of Arbitrary Staff Cuts
- Arbitrary large IRS staff cuts risk losing expertise and reducing efficiency.
- Long-term experts are not fungible and need years to train replacements adequately.