You’ve probably heard the rumors or seen the headlines about the IRS hiring 87,000 new agents. Then, you likely heard the exact opposite—that the agency was being gutted. It's confusing. Honestly, the taxman's office has been through a bit of a mid-life crisis lately. If you're wondering how many people work in the IRS right now, the answer isn't a static number you'll find in a dusty 2022 textbook. It's a moving target shaped by massive budget swings, political tug-of-wars, and a whole lot of early retirements.
As of early 2026, the workforce is sitting at roughly 76,000 to 80,000 full-time equivalent employees.
That’s a big drop from where things were just a year ago. In early 2025, the agency had actually managed to puff up its ranks to over 100,000 people. They were riding high on Inflation Reduction Act (IRA) funding. But then, the Department of Government Efficiency (DOGE) and a new administration stepped in with a "fork in the road" policy. They offered buyouts. They cut probationary staff. They basically hit the reset button on the agency's growth.
The Great Shrinking Act: Why the Numbers Fell
The IRS started 2025 with about 103,000 employees. It was the first time in decades the agency felt "full." But by the middle of 2025, that number plummeted. According to reports from the National Taxpayer Advocate, the workforce saw a 26% decrease in just a few months.
Why the sudden exit? It wasn't just one thing. It was a combination of:
- The Deferred Resignation Program (DRP): Thousands of employees took an offer to resign while keeping pay through September 2025.
- Probationary Terminations: Over 7,000 newer hires—people who hadn't hit their one-year mark—were let go in one giant sweep.
- Natural Attrition: The IRS has an aging workforce. A huge chunk of the staff is always within shouting distance of retirement. When the vibes at the office got "uncertain," many just decided to hang up the pocket protector for good.
It's kinda wild when you look at the specific departments. The "Transformation and Strategy Office" went from 80 people to just 4. That’s a 95% wipeout. If you're trying to reach someone at the IRS these days, those are the kinds of numbers that explain why the hold music might feel a little longer than it did in 2024.
How Many People Work in the IRS by Job Title?
Not everyone at the IRS is an "agent" with a badge and a gun. In fact, most aren't. Most are people sitting in cubicles or data centers trying to make sense of the millions of tax forms that flood in every April.
Revenue Agents and Auditors
These are the folks who actually look at your books. Before the recent cuts, there were around 10,000 to 12,000 of them. After the 2025 downsizing, the "Global High Wealth" unit—the ones who audit billionaires—lost nearly 38% of its staff.
Tax Examiners
These people are the backbone of the filing season. They process returns and check for simple math errors. At the peak, there were over 40,000 people in Taxpayer Services. Now? That number is closer to 33,000.
Special Agents (Criminal Investigation)
This is the "cool" part of the IRS. They carry firearms and investigate money laundering and organized crime. Interestingly, this group is often protected during budget cuts. Even during the recent shutdowns and "slashing," the roughly 3,000 employees in Criminal Investigation (CI) mostly stayed on the job.
Customer Service Representatives
If you've ever called the 1-800 number, you've talked to these people. In 2023 and 2024, the IRS bragged about 3-minute wait times because they had hired thousands of new phone reps. But with the 2025-2026 budget shifts, those "Level of Service" metrics are under heavy pressure again.
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The 87,000 Employee Myth vs. Reality
We have to talk about that 87,000 figure. It’s the number that won't die.
Back in 2021, the Treasury Department suggested that with $80 billion in new funding, they could hire about 87,000 staffers over a ten-year period. It was never meant to be 87,000 guys in suits knocking on doors in a single week. It was supposed to cover everything from IT nerds to janitors.
By the time 2026 rolled around, much of that funding was clawed back by Congress. The agency did reach a 100,000-person headcount briefly, but the "hiring spree" was effectively neutralized by the 2025 layoffs.
What This Staffing Crisis Means for You
So, the IRS is smaller now. Big deal, right? Well, it depends on who you are.
If you're a high-net-worth individual with a complex tax strategy, you might be breathing a sigh of relief. Fewer agents mean fewer audits. The unit that handles "Large Business and International" (LB&I) took a significant hit in the recent downsizing.
However, if you're a regular person waiting for a refund or trying to resolve a flag on your account, a smaller IRS is bad news. When how many people work in the IRS drops, the backlog of paper returns usually grows. We saw this during the pandemic when the workforce was thin; it took years for the agency to dig out of the mountain of unopened mail.
Actionable Insights for Taxpayers in 2026:
- File Electronically (Always): With fewer people to open envelopes, a paper return is a one-way ticket to a six-month wait. Use the Direct File system if it’s still available in your state, or stick to trusted e-file software.
- Use the "Where's My Refund?" Tool: Don't bother calling. With the Customer Service division seeing a 22% reduction in staff, the phone lines are going to be a nightmare. The online tools are updated once a day and are your best bet.
- Check Your "Taxpayer Account" Online: The IRS has put a lot of money into digital accounts. You can see what you owe, your payment history, and even some notices without ever talking to a human. Since there are fewer humans to talk to, this is your new best friend.
- Expect Slower Audit Resolutions: If you do get audited, don't expect it to be over quickly. The agents who are left are overworked and carrying double the case loads they had in 2024.
- Watch for "Phased" Layoffs: The staffing levels are still shifting. Reports suggest another wave of cuts could happen by August 2026 as more IRA funding is redirected. Stay updated on the news if you have an ongoing case with the agency.
The reality of the IRS workforce today is one of "doing more with less"—or at least trying to. While technology and AI are being brought in to fill the gaps, they aren't quite ready to replace the 25,000 people who walked out the door last year.
To stay ahead of potential delays, ensure your 2025 tax data is organized early and double-check all 1099 and W-2 forms before hitting submit. If you're dealing with a complex issue, consider reaching out to the Taxpayer Advocate Service (TAS). Even though they are also facing staffing hurdles, they remain a "last resort" for those stuck in the IRS's administrative gears.