IRS layoffs and voluntary separation programs are ongoing. It’s estimated that the agency’s staff could ultimately shrink by 25% or more. Such cuts may have consequences for tax collection. The IRS took in approximately $5.1 trillion in tax revenue in fiscal year 2024. Without adequate staffing to investigate tax evaders, revenues could fall. According to a spokesman for the nonpartisan Financial Accountability and Corporate Transparency Coalition, it’s a mistake to go “after the part of the government that actually brings in the overwhelming amount of revenue.” The National Bureau of Economic Research found that every dollar spent on IRS enforcement generally returns between $5 and $12.
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