A shrinking IRS staff is appearing to be having an impact in the form of fewer collections.
The Treasury Inspector General For Tax Administration said in a new report released Tuesday that revenue collected by the IRS fell 9 percent in fiscal 2012 to 50.2 billion down from $55.2 billion in fiscal 2011. Since 2010, revenue has fallen 13 percent about the same reduction as the 14 percent drop in enforcement personnel, according to the report.
The IRS is facing many new challenges while operating with fewer resources and employees. Several indicators showed the effect of this, including a decrease in enforcement revenue and a continued increase in accounts receivable, said Russell George, the Treasury Inspector General for Tax Administration.
The IRS has lost 8,000 full-time positions since fiscal 2010. Roughly 5,000 of those were in tax enforcement, according to the report.
The situation may get worse one third of executives and 20 percent of managers are currently eligible for retirement, according to the report.