Last year, the IRS trimmed its auditing workforce, a decision that a recent Inspector General report suggests may have backfired. Enforcement-driven tax collections have dropped sharply, indicating that fewer auditors are catching non‑compliance. The report raises questions about whether the agency’s cost‑cutting strategy has undermined its revenue‑generation mission, and it points to potential gaps in oversight that could affect taxpayers and the Treasury’s bottom line.
The IRS slashed its auditing staff last year — but the move may have backfired as tax collections from enforcement efforts plummeted, an Inspector General report shows.
