IRS audit revenue plunged following workforce reductions, Treasury watchdog finds

TL;DR

IRS audit revenue fell 35% in fiscal 2025, totaling $6.5 billion, down from $10 billion in fiscal 2024.
The agency lost almost 10,000 enforcement workers, reducing the number of auditors and collectors to 17,517 as of January 2026.
Despite lower audit revenue, total federal tax receipts rose to $5.3 trillion in fiscal 2025, a 4.2% increase.
Audits of large corporations increased, but audits of new business partnerships and wealthy individuals (income over $400,000) decreased.
Concerns are raised that staffing losses undermine the IRS's ability to enforce tax laws and may become more apparent over time.

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