IRS To Boost Enforcement Workforce By 40% By Year-End 2024

The Internal Revenue Service (IRS) intends to raise its enforcement personnel by 40 percent by the end of this fiscal year, with revenue agents seeing the largest workforce increase.

For fiscal year 2024, the IRS plans to boost enforcement staff by a net 5,462 employees, according to a Jan. 29 report by IRS watchdog Treasury Inspector General for Tax Administration (TIGTA). This would take the total number of enforcement personnel at the tax agency to 18,960 by the end of fiscal 2024, which is 40 percent higher than the staffing at the beginning of October 2023.

Out of the 5,462 net additions, 4,704 will be revenue agents who are tasked with conducting “face-to-face audits of more complex returns.”

The tax agency intends to add a net 493 special agents for the year, who are armed officials investigating “potential criminal activities.” Staffing of revenue officers will rise by 265 employees. Revenue officers are tasked with collecting delinquent taxes and securing delinquent returns.

By fiscal 2024-end, revenue agents will comprise close to 70 percent of the enforcement personnel. Armed special agents will make up 13.5 percent and revenue officers will account for 16.4 percent.

The Inflation Reduction Act (IRA) provided the IRS with $79.4 billion in supplemental funding that is available for the agency until September 2031. By the quarter ended Sept. 30, 2023, the agency had used $3.5 billion of the funds.

The IRS spent $1.4 billion out of the $3.5 billion IRA funds on its employees, “nearly doubling expenditures in this object class category in the fourth quarter.”

Most of the labor costs were accounted for by taxpayer services, which the TIGTA said “helped support the IRS’s efforts to hire additional customer service representatives to answer taxpayer telephone calls, as well as employees to staff Taxpayer Assistance Centers for the 2023 filing season.”

The IRS employed 89,767 people by the end of fiscal 2023. In addition to hiring staff to improve taxpayer services, the tax agency “focused on expanding enforcement on taxpayers with complex tax filings and high-dollar noncompliance to address the tax gap.”

“Tax gap” refers to the difference between taxes owed and paid to the government. The IRS claims the tax gap rose to $688 billion in 2021 alone, which is $192 billion more than estimates from 2014–16 and $138 billion more than 2017-19.

In October, IRS Commissioner Danny Werfel pointed to the tax gap to justify the importance of “increased IRS compliance efforts on key areas.” At the time, he said that the agency would use IRA funding to strengthen compliance on “high-income and high-wealth individuals” as well as businesses.

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