Welcome to today’s podcast, where we discuss a significant development at the Internal Revenue Service. Over 22,000 IRS employees have accepted a resignation offer from the Trump administration, a move that could drastically reduce the agency's ability to collect taxes.

Since January, about 5,000 employees have already resigned, with an additional 7,000 laid off, bringing the potential workforce reduction to a staggering one-third this year. This mass exodus raises concerns, as the IRS has already begun abandoning some audits, leading many to wonder if individuals might feel emboldened to evade taxes amidst a weaker agency.

Under the resignation terms, selected employees will receive paid leave until September before formally leaving their positions. Some may still opt out, but the uncertainty looms large for remaining staff.

Interestingly, the Biden administration previously expanded the IRS workforce by 20,000 employees to enhance tax collection efforts. Treasury spokesperson Scott Bessent noted, “The Secretary is committed to ensuring that efficiency is realized while providing the collections, privacy, and customer service the American people deserve.”

Among those resigning is acting commissioner Melanie Krause, who cited concerns over sharing taxpayer information with Immigration and Customs Enforcement. The decision to potentially use IRS data for deportations has raised alarms among many within the agency.

Stay tuned as we continue to follow this evolving story and its implications for taxpayers across the country.
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