# US IRS audit revenue and workforce changes > Live situation record from CLSTR: https://clstr.news/situations/us-irs-audit-revenue-and-workforce-changes > Updated: 2026-09-10T19:52:55.000Z. Sources: 4. Developments: 2. Reports indicate a significant decline in US Internal Revenue Service (IRS) audit revenue, which fell by 35% to $6.5 billion in fiscal year 2025. This decrease follows workforce reductions linked to cost-cutting efforts by the Department of Government Efficiency (DOGE), which saw the number of employees dedicated to auditing and collections drop by nearly 10,000 workers by January 2026. The staffing changes have resulted in varied impacts across different sectors: large corporate audits rose by 17%, while audits of new business partnerships fell by 30% and examinations of individuals earning over $400,000 decreased by 26%. While officials suggest that artificial intelligence and other technological tools may eventually mitigate the need for large staff numbers, specific plans have not been released. In fiscal year 2025, the IRS closed nearly 500,000 audits and recommended $26.8 billion in additional tax. The agency utilizes several methods for audit selection, including random statistical selection, computer scoring via the Discriminant Function System (DIF), and related examinations triggered by transactions involving business partners or investors. ## Timeline ### 2026-09-10: IRS tax notices and audit selection processes explained The IRS issues many automated notices due to processing delays, and uses methods like DIF scoring and random selection to conduct tax audits, which resulted in $26.8 billion in recommended taxes for FY2025. 2 sources. https://clstr.news/cluster/irs-tax-notices-and-audit-selection-processes-explained ### 2026-09-01: IRS audit revenue falls 35% following federal workforce reductions IRS audit revenue dropped 35% to $6.5 billion in fiscal 2025 following significant workforce reductions and cost-cutting measures within the agency. 2 sources. https://clstr.news/cluster/irs-audit-revenue-falls-35-following-federal-workforce-reductions --- Cite as: US IRS audit revenue and workforce changes. CLSTR, https://clstr.news/situations/us-irs-audit-revenue-and-workforce-changes