The IRS in Crisis: Layoffs, Political Battles, and the Erosion of Tax Enforcement

A Dedicated Professional’s Disappointment: Beth Crowell’s Story

Beth Crowell, a 64-year-old accountant with years of experience working for large corporations, had joined the Internal Revenue Service (IRS) in Colorado last July. She was proud to work for the agency, hoping to use her expertise to help the federal government collect more taxes. Crowell was part of a team auditing a large multinational company earning $3 billion annually—a firm that had never been examined before due to the IRS’s lack of skilled personnel to handle such complex cases. However, her efforts were cut short when she and thousands of other IRS employees were laid off as part of the Trump administration’s broader push to reduce the federal workforce.

The layoffs hit Crowell’s division, Large Business and International, particularly hard, with roughly half of the more than 7,000 terminated employees coming from her department. The audit she was working on, which she described as a “slam-dunk case” for the IRS, is now in jeopardy. Five of the nine team members, including Crowell, were let go, leaving the investigation adrift. “We were going to work through these issues and have it done in an effective, professional, and collaborative manner,” she said. “All of the momentum we had is gone.”

Layoffs and the Decline of Tax Enforcement

The layoffs under the Trump administration have raised concerns about the IRS’s ability to fulfill its core mission of collecting taxes. The agency, which has long struggled with understaffing and outdated technology, is now facing an even greater challenge in conducting intensive investigations into large businesses and wealthy individuals. This decline in enforcement could lead to a loss of billions in potential tax revenue, exacerbating the federal deficit.

The layoffs of probationary employees like Crowell are just the beginning of the administration’s plans for the IRS. The agency is bracing for budget cuts and further workforce reductions that could shrink its 100,000-person workforce by as much as half. Such drastic cuts would not only reduce scrutiny of tax compliance but also leave many Americans with less support for filing their taxes.

Politicizing the IRS: A Departure from Tradition

President Trump’s agenda for the IRS goes beyond layoffs and budget cuts. His administration is asserting unprecedented political control over the agency, which has historically been insulated from White House leadership changes. Trump’s decision to replace Daniel Werfel, the IRS commissioner appointed by President Biden, with Billy Long, a former Republican congressman, marked a significant shift. Long, a vocal Trump supporter with no prior experience running a large organization or handling complex tax issues, was an unconventional choice to lead the agency.

The Trump administration’s influence is also evident in Elon Musk’s involvement with the IRS. Musk, who claims to have paid over $11 billion in taxes in 2021, has dispatched a team of technologists to the agency to automate many of its functions. His representatives, including Gavin Kliger and Sam Corcos, have been working to overhaul the IRS’s operations, though their efforts have been met with resistance from agency officials who raise legal and ethical concerns.

The Human Cost: Employees Left in Limbo

The layoffs and upheaval at the IRS have taken a toll on employees like Beth Crowell and Caryn Burns, a former accountant who joined the agency in September. Burns, who was laid off last month, described the outdated technology and staffing shortages she encountered during her time at the IRS. “They couldn’t hire people quickly enough to start making the necessary changes,” she said. Despite her support for Trump, she was dismayed by the layoffs and the disruption they caused. “Now that he’s brought in Elon Musk, it’s a mess,” she said.

The layoffs were carried out with little regard for the personal and professional impact on employees. Amanda Musgrave, a 41-year-old IRS employee in Texas, recounted the stress and indignity of waiting hours for her termination notice to arrive. “I ended up having a panic attack, and that was not fair,” she said. “It was completely degrading and disgusting what I went through.” Musgrave also expressed frustration over the waste of taxpayer dollars spent on hiring and training employees who were let go before they could make a meaningful contribution.

The Bigger Picture: The IRS’s Role in Government and Society

The IRS has long been an unpopular agency, often targeted by anti-government rhetoric. Yet, its role in collecting taxes to fund federal programs is critical to the functioning of the government. The Trump administration’s efforts to shrink the IRS and reduce its enforcement capabilities could have far-reaching consequences, including a decline in tax revenue and greater opportunities for tax evasion.

Even before Trump took office, associates of Elon Musk were scrutinizing the IRS, raising questions about its technology and staffing. The agency’s modernization efforts were already underway, but the Trump team has accelerated changes, prioritizing automation and workforce reductions. Some officials worry that these changes could lead to the misuse of taxpayer data for political purposes or further weaken the IRS’s ability to enforce tax laws.

An Uncertain Future for Tax Enforcement and Governance

The IRS is at a crossroads, facing deep uncertainty as it navigates political upheaval, staffing cuts, and technological overhauls. With its workforce dwindling and its independence under threat, the agency’s ability to fulfill its mission is increasingly in doubt. The layoffs of experienced professionals like Beth Crowell and Caryn Burns, as well as the politicization of its leadership, raise questions about the future of tax enforcement in the United States.

As the IRS struggles to adapt to the changes imposed by the Trump administration, the consequences for taxpayers and the federal budget remain to be seen. While the administration claims that modernization and streamlining are necessary to improve efficiency, critics argue that these efforts are undermining the agency’s ability to collect taxes and ensure compliance. The outcome of this transformation will shape the IRS for years to come, with implications for all Americans.