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The IRS lost 40% of its IT staff and nearly 80% of its tech leadership in 2025 as part of the DOGE-driven federal workforce reduction, according to IRS CIO Kaschit Pandya. Starting with roughly 8,500 IT employees, the agency shed over 1,300 workers by October 2025, with an additional 1,000 tech staff reassigned to frontline tax services. Pandya described the reorganization as the largest in two decades, breaking up departmental silos in favor of cross-functional teams. However, the US Treasury Inspector General warned that the staff losses are putting implementation of legislative tax changes at risk for the 2026 filing season.

DOGE bites taxman