IRS Commissioner Danny Werfel announced on Monday that the tax agency aims to expand its workforce to over 100,000 employees within the next three years in order to achieve its modernization, service, and enforcement objectives. He emphasized the need for additional funding to sustain this increased capacity, stating that near-term hiring priorities will focus on enhancing taxpayer services and managing complex audits.
Werfel revealed that the IRS will outline its hiring plans in an upcoming update to its strategic operating plan, which will allocate approximately $60 billion in supplemental funding over a decade from the 2022 Inflation Reduction Act. Currently employing around 90,000 individuals, Werfel stated the goal is to exceed 100,000 employees over the next two to three years.
This proposed increase would represent a significant expansion from the fiscal 2022 staffing level of 79,070 full-time-equivalent staff, which was approximately 9.1% lower than the 2013 level. The IRS saw a decline in employment to 73,519 in 2019 due to years of budget cuts, particularly during Republican-controlled Congresses.
Despite claims from Republicans that the IRS is building an “army” of 87,000 agents, Werfel clarified that the overall increase in staffing would be much lower. He referenced a 2021 Treasury report estimating hiring needs to offset retirements and rebuild the workforce. However, a top-line fiscal 2024 spending agreement is set to reduce the initially proposed $80 billion in funds to $60 billion.
Amidst negotiations over a potential government shutdown, Werfel cautioned about possible disruptions for taxpayers during the ongoing tax filing season, emphasizing the agency’s commitment to operating within legal constraints while ensuring essential services.
Looking ahead, President Biden’s fiscal 2025 budget proposal includes a request for an additional $104 billion in IRS funding, intended to cover later years of the 10-year budget window. Despite the reduction in supplemental funding by $20 billion, Werfel affirmed that the IRS will maintain its current pace of technology investments. However, he highlighted the necessity of additional funding to support the IRS’s expanded workforce and sustain efforts in sophisticated audits and technology upgrades. Without adequate funding, Werfel warned of potential capacity constraints in the future.