The IRS Isn’t Bloated
It’s Understaffed
Thanks to Ben Alarie, the CEO of Blue J, for sharing this article.
After 10+ years developing AI-driven tax solutions, I'm deeply concerned by recent proposals to slash the Internal Revenue Service workforce by up to 50%.
The IRS isn't bloated—it's understaffed. The agency already struggles to meet existing obligations; a reduction of this magnitude would severely worsen delays, erode taxpayer service, and substantially widen the tax gap.
As CEO of Blue J, a company dedicated to AI-driven tax research, I'm deeply committed to the thoughtful integration of technology in tax administration. Indeed, greater reliance on AI could benefit my company directly. But even from this vantage point, abruptly replacing half the IRS workforce with technology isn't realistic or responsible public policy. Effective modernization must be phased, carefully planned, and structured to enhance—not undermine—the essential human expertise within the IRS.
In a recent bipartisan statement, seven former IRS Commissioners emphasized these cuts would "shift the burden of funding the government from people who shirk their taxes to the honest people who pay them," undermining efforts to modernize customer service and simplify tax filing processes.
Tax administration isn't partisan—it's foundational. Effective tax administration ensures fairness, funds public services, and maintains taxpayer confidence. Rather than dismantling this critical institution, let's responsibly invest in modernizing it, integrating human and technological capabilities to secure America’s fiscal health.
I’d especially welcome insights from tax professionals or those experienced in tax administration:
What specific impacts do you foresee from dramatically reducing IRS staffing?
How can we best leverage technology to responsibly support and improve—not dismantle—this essential institution?
Contact me via my LinkedIn profile with your thoughts.