Bloomberg: Tax Season Firings Threaten Compliance Efforts, Democrats Warn

More than 130 Democrats are condemning the Trump administration’s firing of thousands of IRS employees during tax filing season, saying it may put a dent in compliance efforts and taxpayer service.

Rep. Deborah Ross (D-N.C.) and Rep. Lloyd Doggett (D-Texas), a top Democrat on the House Ways and Means Committee, led a letter to IRS Acting Commissioner Melanie Krause Wednesday blasting the firings of the new hires and the lack of transparency on where the cuts are happening. These Democrats also asked for clarity on how the IRS plans to mitigate the fallout and what the impact of firings are on compliance and the collection of revenue.

“This abrupt reduction in workforce could exacerbate existing challenges faced by an already overburdened agency and threatens to undermine the IRS’ capacity to serve the American people effectively, including ensuring that taxpayers receive timely services and refunds,” the letter said.

• The Trump administration told the IRS that it aims to cut up to half of the agency’s roughly 100,000 workforce by the end of the year.
• Between 4,000 and 5,000 IRS employees accepted the bid by billionaire Elon Musk to resign and continue being paid until Sept. 30, the IRS union leader said Tuesday.
• While the IRS exempted employees considered critical to tax filing season from the firings of new hires, it lost roughly 7,400 in other divisions.