Former IRS Commissioner Warns of Long-Term Impact from DOGE Staff Cuts
· World · Fortune, CBS News
Former acting IRS Commissioner Douglas O’Donnell warned that the Department of Government Efficiency's decision to slash over 25,000 jobs from the agency will likely impair its operations for years. Despite these cuts, the IRS reported processing 140.2 million individual returns and issuing 90.4 million refunds during the 2026 tax season. The agency maintains that its headcount remains stable at 74,000 employees and claims it successfully managed the filing period with higher average refunds. O’Donnell, who stepped down in February 2025, noted that the IRS has suffered from underinvestment across multiple administrations for decades. The agency is currently attempting to transition to a paperless system to reduce processing costs from $450 million to under $20 million by 2029.
Why it matters
The reduction in workforce at the IRS raises concerns about the agency's future capacity to handle tax enforcement and taxpayer services, potentially affecting the efficiency of federal revenue collection.
Read the original report — Fortune
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