IRS collected $3.5 billion less from audits in 2025 after losing 30% of its auditors to DOGE cuts, watchdog says

The Internal Revenue Service (IRS) collected $3.5 billion less in revenue from tax audits in 2025, according to a new watchdog report. This decline was directly attributed to the loss of 30% of the agency's auditors due to cost-cutting measures by the Trump administration, as reported by the Treasury Inspector General for Tax Administration (TIGTA).

The IRS collected $6.5 billion in revenue from tax audits in fiscal year 2025, down from $10 billion the previous year. The reduction in staff has impacted the IRS's ability to conduct timely investigations to collect unpaid taxes from individuals and corporations attempting to underreport their earnings. In some cases, audits were delayed by six months due to staff uncertainty.

The decline in audits and staffing marks a reversal from the Biden administration's efforts to hire tens of thousands of new employees and pursue tax evaders, which were funded by approximately $80 billion in additional IRS funding via the Inflation Reduction Act of 2022.