Donald Trump Calls to Freeze 88,000 New IRS Agents! What Does This Mean for the IRS?

Donald Trump has called for a freeze on the 88,000 potential new hires at the IRS, many of whom would be agents. 

His stance is clear: stop the expansion and reassess who’s being brought on board.

Trump’s Take on the IRS Hiring Freeze:(Embed tweet to blog)

Trump’s vision includes temporarily halting new hires to ensure that only those who are "faithful to the American public" are brought into federal offices. 

He’s vocal about reducing the IRS’s scope and has highlighted concerns over allowing agents to carry firearms.

"We’re going to take the 88,000 people they hired to go after you with guns… and pause that."

The rhetoric is strong, but it raises important questions: Will this freeze happen? And if it does, what impact will it have?

The Case for and Against the Hiring Freeze

The IRS has historically been effective at using allocated funds to bring in more revenue than it spends. 

Investments in modernization and additional staff have proven financially beneficial for the government. 

However, Trump’s proposed freeze could delay these efforts, especially if it’s tied to broader policy shifts like dismantling DEI (Diversity, Equity, and Inclusion) initiatives in hiring.

Here’s what’s worth considering:

• Headcount Reductions in Middle Management: There’s potential to cut middle management without impacting overall effectiveness. The IRS could streamline operations and focus resources on front-line roles.
• Long Training Periods for Agents: Training IRS agents takes time. Even if new hires are frozen temporarily, it could slow down the agency’s ability to handle complex audits and enforcement in the future.
• Impact on Revenue Collection: With fewer staff and delayed hiring, the IRS’s ability to generate revenue might take a hit. Historically, increased funding has led to greater returns for the government, raising the question of whether cuts would be counterproductive.

What’s Next?

A hiring freeze signals a shift in priorities under a new Trump administration. 

In February, Trump fired about 7,000 probationary workers who had been hired in the past one or two years. (Meeting DEI goals may have been a big factor in these hirings.)

It appears that the Trump administration is planning large headcount reductions (layoff) as part of reducing the size of government. How this will affect the IRS is unknown.

One thing is certain: the debate over the role and size of the IRS isn’t going away anytime soon.

At CryptoTaxAudit, we’re keeping a close eye on these developments. 

No matter what changes come, staying compliant with the IRS is crucial. 

If you’re a crypto investor, we’re here to help. 

Visit CryptoTaxAudit.com to learn how we can help you protect your gains and stay ahead of IRS requirements.

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