Elon Musk’s DOGE Downsizes IRS, 31% of Auditors Have Quit
Elon Musk’s Department of Government Efficiency (DOGE) recently put the hammer down on the IRS, significantly downsizing the government department. As a result of the cuts, 31% of IRS auditors have reportedly quit, according to Bloomberg.
JUST IN:
— Watcher.Guru (@WatcherGuru) May 5, 202531% of IRS tax auditors quit following DOGE downsizing.
More than 3,600 revenue agents have left the IRS, according to an IRS watchdog report. Those agents were responsible for collecting tax payments. As a result of the resignations, the agency’s ability to chase after tax fraud criminals and tax evaders could be limited in 2026. Additionally, 18% of revenue officers, who oversee challenging tax cases, and 10% of tax examiners have left the agency, the Treasury Inspector General for Tax Administration said in a recent report.
Elon Musk’s DOGE has worked to cut costs and downsize the IRS agency since the establishment of his department. So far, more than 7,300 probationary employees have been terminated. Furthermore, when Musk and DOGE gave employees an alternative to receive a buyout or be terminated, more than 4,100 workers took the former.
How Could IRS Layoffs Affect The Future?
The Yale Budget Lab forecast that laying off about 18,000 IRS employees would result in a net revenue loss of roughly $159 billion over ten years. That could rise to as much as $1.6 trillion over ten years if non-compliance is high, the group said. The fewer auditors and IRS agents at the agency, the more likely tax-fraud-related crime will rise next tax season.
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On Friday, the White House released a fiscal 2026 budget requesting $163 billion in non-defense savings that it associates with the DOGE effort. Most of the savings the administration claimed would be plowed into a $119 billion boost in military spending. Adding in the loss of tax revenue could mean the DOGE effort causes a net budget deficit increase.
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Elon Musk’s DOGE Downsizes IRS, 31% of Auditors Have Quit
Elon Musk’s Department of Government Efficiency (DOGE) recently put the hammer down on the IRS, significantly downsizing the government department. As a result of the cuts, 31% of IRS auditors have reportedly quit, according to Bloomberg.
JUST IN:
— Watcher.Guru (@WatcherGuru) May 5, 2025
More than 3,600 revenue agents have left the IRS, according to an IRS watchdog report. Those agents were responsible for collecting tax payments. As a result of the resignations, the agency’s ability to chase after tax fraud criminals and tax evaders could be limited in 2026. Additionally, 18% of revenue officers, who oversee challenging tax cases, and 10% of tax examiners have left the agency, the Treasury Inspector General for Tax Administration said in a recent report.
Elon Musk’s DOGE has worked to cut costs and downsize the IRS agency since the establishment of his department. So far, more than 7,300 probationary employees have been terminated. Furthermore, when Musk and DOGE gave employees an alternative to receive a buyout or be terminated, more than 4,100 workers took the former.
How Could IRS Layoffs Affect The Future?
The Yale Budget Lab forecast that laying off about 18,000 IRS employees would result in a net revenue loss of roughly $159 billion over ten years. That could rise to as much as $1.6 trillion over ten years if non-compliance is high, the group said. The fewer auditors and IRS agents at the agency, the more likely tax-fraud-related crime will rise next tax season.
Also Read: Nasdaq Penny Stock Worth 1 Cent ‘Greenlane Holdings’ Rises 9% in a Day
On Friday, the White House released a fiscal 2026 budget requesting $163 billion in non-defense savings that it associates with the DOGE effort. Most of the savings the administration claimed would be plowed into a $119 billion boost in military spending. Adding in the loss of tax revenue could mean the DOGE effort causes a net budget deficit increase.
Read More
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