The IRS shares details on how its budget is allocated to resources, the composition of its workforce, and many other details that are relevant to see what areas the IRS is prioritizing. You can read from their official website (link below) and see more details on the graphs, tables and even download Excel files with more granular data.

  • Table 32. Costs Incurred by Budget Activity, Fiscal Years 2022 and 2023
    • This table provides the breakdown of personnel cost in 2023 compared to 2022
    • Out of the $16b of operating cost, $10.5b is related to personnel and around half of that amount if for enforcement purposes (investigations, examinations, etc. – Yes, you guessed right audits and those 170 million notices)
  • Table 33. Collections, Costs, Personnel, and U.S. Population, Fiscal Years 1994–2023
    • The gross collections have increased over the years and now (2022 and 2023) it is almost twice the amount collected in 2010 and 2011.
    • The operating cost are a all time high in 2023 ($16b) due to more funding, versus years before 2019 and before below $12b.
    • Note that the full time equivalent positions is at a ten years high around 83 thousand employees. There was a reduction in employees but the last five years number of employees are increasing (this is relates to the previous point)
    • The average tax per capita has increased significantly in 2022 and 2023 to around $14k, while in the previous decade (2010’s) was around $10k.
    • Another interesting ratio is the cost for $100 collected which is around $0.34 in 2023 in line with the previous decade.
  • Table 34. Personnel Summary, by Employment Status, Budget Activity, and Selected Personnel Type, Fiscal Years 2022 and 2023
    • Out of the around 83 thousand employees, around 39% is for examinations and collections and investigations and around the same percentage is for filing and account services
  • Table 35. Internal Revenue Service and Chief Counsel Labor Force, Compared to National Totals for Federal and Civilian Labor Forces, by Gender, Race/Ethnicity, Disability, and Veteran Status, Fiscal Year 2023
    • Out of the IRS employees (87 thousand), around 65% are female, 14% disable, 9% veteran, 31% Black, 16% Hispanic, etc. so it is a completely diverse workforce.

Transparency for any government organization should be applauded and the IRS has been doing an excellent job communicating their priorities and what they are working on. From a taxpayer and tax professional point of view, it is extremely relevant to see what the use of our taxpayer dollars end up and what departments are getting a higher proportion of those funds. Also, it is a good reminder to be polite when addressing IRS agents (and government officials, in general) as you have a good chance to talk with a veteran, disable person, etc. that they are trying to do their job to the best of their ability and with the current resources provided (some of them, especially software, quite tricky to work on).

Link IRS – IRS Budget & Workforce