IRS Cuts Spark 'Won't Catch Me' Tax-Cheat Mindset

TL;DR

IRS shed thousands of enforcement workers since Trump returned, with 2027 budget proposing enforcement staff below 30,000.
Total IRS headcount dropped over 25,000 by May to about 77,000, including a quarter of auditors.
Cuts spur taxpayer belief IRS won't catch cheating, risking lower compliance and billions in lost revenue.

The story at a glance

The Wall Street Journal reports on sharp IRS staffing reductions under the Trump administration, which has cut thousands of enforcement employees and proposes further drops in the fiscal 2027 budget. Main players include IRS chief executive Frank Bisignano, former officials like Carolyn Schenck, and the Treasury Department. This comes ahead of the April 15 tax deadline, as lawyers note more clients willing to skirt rules. The cuts reverse Biden-era hiring funded by the Inflation Reduction Act.[[1]](https://www.wsj.com/politics/policy/irs-staffing-tax-enforcement-1a18e33f)

Key points

IRS started 2025 with about 103,000 employees; by May, down more than 25,000 (to ~77,000), with a quarter of auditors gone.[[1]](https://www.wsj.com/politics/policy/irs-staffing-tax-enforcement-1a18e33f)
Enforcement workforce on track below 30,000, less than end of Trump's first term and a third below Biden peak.[[1]](https://www.wsj.com/politics/policy/irs-staffing-tax-enforcement-1a18e33f)
Fiscal 2027 budget seeks 69,000 total employees, under 2018 low; enforcement funding sliced amid white-collar enforcement pullback.[[1]](https://www.wsj.com/politics/policy/irs-staffing-tax-enforcement-1a18e33f)
Initial $46.7 billion enforcement funding from Inflation Reduction Act cut to $3.8 billion by Congress.[[1]](https://www.wsj.com/politics/policy/irs-staffing-tax-enforcement-1a18e33f)
Tax lawyers see rising cheating attitudes; IRS voluntary compliance at 85% initial, 87% post-audits.[[1]](https://www.wsj.com/politics/policy/irs-staffing-tax-enforcement-1a18e33f)
Agency budget document admits enforcement cuts mean "missed opportunities and lost revenue."[[1]](https://www.wsj.com/politics/policy/irs-staffing-tax-enforcement-1a18e33f)

Details and context

IRS staffing plunged after Trump took office in January 2025, via attrition, buyouts, and hiring freezes—hitting enforcement hardest, including revenue agents for big audits and IT staff for systems. This echoes 2010-2018 cuts, when enforcement fell 30%, slashing millionaire audit rates by 77% and corporate ones by half.[[2]](https://www.taxnotes.com/research/federal/legislative-documents/congressional-tax-correspondence/senators-question-irs-enforcement-fairness-amid-staff-cuts/7txbr)

Bisignano told Congress last month there's no set "right" staffing level; agency pushes tech and online tools to offset losses, like better self-service for simple tasks. Critics, including ex-IRS commissioner Charles Rettig, warn non-compliers benefit most, as U.S. expenses don't shrink.[[3]](https://www.chamberlainlaw.com/news-news-1365.html)

Estimates peg decade-long revenue loss at hundreds of billions, outweighing savings; high-wealth and partnership audits already declining.[[4]](https://www.businessreport.com/article/irs-workforce-cuts-could-cost-the-us-hundreds-of-billions-in-lost-revenue)

Key quotes

“There’s seemingly this mentality building which is, ‘The IRS isn’t going to catch me,’” said Carolyn Schenck, former IRS national fraud counsel.[[1]](https://www.wsj.com/politics/policy/irs-staffing-tax-enforcement-1a18e33f)
“I understand that we have less people, but I’m not sure that there’s anything that ever said what the right staffing level was,” Frank Bisignano told lawmakers.[[1]](https://www.wsj.com/politics/policy/irs-staffing-tax-enforcement-1a18e33f)

Why it matters

Sharp IRS enforcement cuts threaten federal revenue at a time of high deficits and steady spending needs. Taxpayers may face fewer audits but also weaker deterrence against cheating, while businesses and wealthy filers see easier compliance gaps. Watch congressional action on the 2027 budget and early audit data, though tech shifts could alter impacts.