Trump Administration Eyes Major Overhaul of IRS, Considers Staff Reductions and Border Reassignment
The Trump administration’s Treasury Department is actively exploring significant changes to the Internal Revenue Service (IRS), including potential staff reductions and reassignment of agents to border security duties, according to sources familiar with the matter. These discussions occur amid broader efforts to streamline government operations, reduce the federal deficit, and modernize the tax agency to reflect the increasing prevalence of electronic filing.
A Treasury Department spokesperson confirmed that a wide range of streamlining initiatives is under consideration, emphasizing the need for modernization to keep pace with how Americans file their taxes. The shift towards electronic filing, with over 90% of individual tax returns submitted electronically, necessitates adjustments in the IRS’s operational structure and resource allocation. The spokesperson stated that the goal is to improve taxpayer customer service and ensure a smooth and successful filing season.
Reports have surfaced suggesting that up to half of the IRS’s approximately 90,000-person staff could be terminated as part of this streamlining effort. The Department of Government Efficiency, tasked with auditing federal agencies and identifying areas of overspending, mismanagement, and fraud, is reportedly leading the charge for these staff reductions. The IRS has already terminated roughly 7,000 probationary employees, those who have not yet achieved full-time employment status.
In addition to potential terminations, the Trump administration is reportedly considering reassigning some IRS agents to assist the Department of Homeland Security (DHS) with immigration enforcement. This idea aligns with President Trump’s earlier suggestion to move IRS agents to the border, where they could be authorized to carry firearms. Certain special IRS agents are already permitted to carry firearms as part of their duties, as outlined in the IRS Code.
DHS Secretary Kristi Noem sent a letter to Treasury Secretary Steven Mnuchin in February requesting the IRS’s assistance in immigration enforcement efforts by Immigration and Customs Enforcement (ICE). Noem stated that President Trump had directed her agency to "take all appropriate action to supplement available personnel to secure the southern border and enforce the immigration laws of the United States," including deputizing federal employees to perform immigration functions.
The Treasury Department’s efforts to streamline the IRS coincide with the annual tax season, when Americans are required to file their individual income tax returns by April 15.
President Trump has expressed strong views on the IRS, criticizing what he sees as excessive hiring of new agents and pledging to reduce the agency’s size. During a rally in Las Vegas in January, Trump stated, "On day one, I immediately halted the hiring of any new IRS agents. They hired, or tried to hire, 88,000 new workers to go after you. And we’re in the process of developing a plan to either terminate all of them or maybe we’ll move them to the border. And I think we’re going to move them to the border. Where they’re allowed to carry guns, you know, they’re so strong on guns, but these people are allowed to carry guns, so we’ll probably move them to the border."
The potential changes at the IRS raise questions about the agency’s ability to fulfill its core functions, including tax collection, enforcement, and taxpayer assistance. Critics argue that significant staff reductions could hamper the IRS’s ability to effectively audit tax returns, leading to increased tax evasion and reduced government revenue. Concerns have also been raised about the potential impact on taxpayer services, such as answering questions and resolving disputes.
Proponents of the changes argue that streamlining the IRS is necessary to improve efficiency, reduce costs, and adapt to the changing landscape of tax filing. They believe that technology and automation can help the IRS operate with fewer employees while maintaining or even improving its performance. Additionally, supporters of reassigning IRS agents to border security duties argue that it would provide valuable resources to address the challenges of illegal immigration and border security.
The debate over the future of the IRS reflects broader ideological differences about the role of government and the appropriate level of taxation and regulation. Republicans generally favor smaller government, lower taxes, and reduced regulation, while Democrats tend to support a larger role for government in providing social services and regulating the economy.
The Trump administration’s efforts to streamline the IRS are likely to continue to generate controversy and debate as the details of the plan are finalized and implemented. The outcome of these changes will have a significant impact on the IRS’s operations, its workforce, and its ability to serve taxpayers and enforce the nation’s tax laws. The IRS reorganization is indicative of a larger shift towards reallocating federal resources towards immigration control. This move has faced scrutiny from both sides of the aisle, raising questions about the effectiveness and appropriateness of transferring tax agents to border duties.
