You know how Trump loved to say, “You’re fired!” Well, guess who just got the boot? 31% of IRS auditors — that’s 3,600 auditors gone since January. And who’s behind the pink slips? Elon Musk’s Department of Government Efficiency (DOGE). They’re calling it “deferred resignation,” but let’s call it what it really is: a mass firing.
Now, for those rich fat cats dodging taxes, it’s a day of celebration. Fewer auditors, less scrutiny, more loopholes to slip through. But for the rest of us? It’s a ticking time bomb.
Here’s why: Fewer auditors chasing down billionaire tax cheats means the IRS has to go after the low-hanging fruit—regular folks like you and me—the small business owners, gig workers, and middle-class families who can’t afford fancy lawyers and offshore accounts.
Who’s in the IRS Crosshairs Now?
- Small Business Owners: Think you can hide that extra cash flow? Think again.
- Independent Contractors & Gig Workers: 1099s that don’t add up? Expect a letter.
- Middle-Class Families: Mortgage deductions, child tax credits — they’re under the microscope.
- Self-Employed & Sole Proprietors: Home office deductions are easy targets.
- Taxpayers with Unfiled Returns: If you haven’t filed, you’re practically begging for an audit.
- Folks with Big Deductions: Medical expenses, charitable donations — if it’s unusually high, expect a knock.
And get this, last year, the IRS raked $32 billion from audits. For every dollar they spent auditing the top 0.1%, they brought in $26 in revenue. But with all those auditors gone, Yale’s Budget Lab says the IRS could lose up to $323 billion over the next decade.
Translation: The rich are partying, and the rest of us? We’re the ones about to get grilled.
So, if you’re sitting on a pile of unfiled returns or think the IRS forgot about you, think again. The big dogs might be off the hook, but the IRS still needs to get paid — and they’re coming after you.
Stay ready. Stay smart. And don’t be the easy target.
Carlos Samaniego, EA
Founder of Income Unchained