The Internal Revenue Service (IRS) is a government agency that handles taxes. But now the IRS is facing a big problem right now. It does not have enough workers to manage the growing complexity of taxes in the United States.
The IRS is responsible for make sure that people and businesses pay the correct amount of taxes. But with less workforce and more complicated rules, the IRS is struggling to work in the United States.
From the March 2025, the IRS removed over 11,000 employees, and this is about 11% of its staff. These workforce cuts are part of a plan to save money. But it has created a problem of shortage of workers.
With the less workforce it will be very hard for the IRS to do its job, especially when the taxes are getting more complicated every year.
Impact on the Small Businesses in the U.S.
The IRS helps businesses to file their taxes correctly. And make sure they follow the rules and regulations. But with less workforce, this is going to be hard.
The small businesses are worried. Because small businesses do not have their own tax experts. That is why they rely on the IRS for help. If the IRS will not be able to help them, many small businesses will face problems in filing taxes.
The rules for taxes in the United States are also getting more complex with time. With the new changes in trade and international business, companies have to follow more tax rules. These rules can be very difficult to understand.
So without enough workforce in the IRS, the businesses will be confused and make costly mistakes.
The IRS is working on new technology to make tax payments easier for the business and individuals.
For example, IRS spent billions of dollars to improve how people file taxes online. These updates are to make the process of tax payment easy for the people.
But technology can not do everything without the workforce. The IRS still needs a good amount of workers to make sure everything works smoothly.
Without proper workforce to support the new tax payment systems, things may not improve as much as expected.
What is the future of the IRS?
The future of the IRS depends on how it will balance the workforce and technology. If the IRS can use the new tools effectively and hire more workers, it will be able to keep up with the complex tax system.
But if they do not, the taxpayers can face longer waits and more confusion in this complex tax filing process.
Please visit the official website of Internal Revenue Service (IRS) for more information.
