Ah... The law of unintended consequences. That everyone could see😜.
The IRS slashed its auditing staff last year in what was billed as a cost-cutting move, but if the effort was designed to improve the government's bottom line, it has backfired.
A new report from the Treasury Department's Inspector General for Tax Administration shows that revenue from audits plunged 35% in fiscal year 2025, meaning billions of dollars in taxes went un-collected. The drop coincides with a 27% cut in enforcement and collection staffing at the IRS, as part of Elon Musk's campaign to boost government efficiency.
"The downstream effects of these reductions are likely to become more apparent over time," the Inspector General wrote.
A new report from the Treasury Department's Inspector General for Tax Administration shows that revenue from audits plunged 35% in fiscal year 2025, meaning billions of dollars in taxes went un-collected. The drop coincides with a 27% cut in enforcement and collection staffing at the IRS, as part of Elon Musk's campaign to boost government efficiency.
"The downstream effects of these reductions are likely to become more apparent over time," the Inspector General wrote.
