The Internal Revenue Service is turning increasingly to artificial intelligence to help manage its workload after months of turmoil triggered by federal cuts and internal disruptions. Following a period in which the Department of Government Efficiency (DOGE) and the Trump administration significantly reduced funding and staffing, the IRS is now beginning to deploy AI-powered tools across several divisions in hopes of easing the pressure created by its shrinking workforce.
A recent Axios report revealed that the agency has adopted Salesforce’s Agentforce platform, marking the first major rollout of AI agents within the IRS. These tools are being introduced at a moment when the tax agency faces mounting challenges: reduced staffing, an aging IT infrastructure, and rising demands from taxpayers who already struggle with delays and unanswered questions.
AI Tools Rolled Out Across Key IRS Units
According to the report, the IRS has begun integrating AI agents into three important areas: the Office of Chief Counsel, the Taxpayer Advocate Service (TAS), and the Office of Appeals. Each of these units handles critical responsibilities that are central to how the IRS manages cases, resolves disputes, and provides assistance.
The Taxpayer Advocate Service is known for helping individuals who encounter serious problems with their tax filings or face delays they cannot resolve through regular channels. As an independent organization within the IRS structure, TAS plays a vital role in flagging issues that could be improved agency-wide. Since taxpayers often rely on this service for direct help, the idea of AI operating behind the scenes raises questions about how much automation will be mixed with human judgment.
The Office of Appeals, another independent arm of the IRS, helps settle disputes without taking cases to court. Because appeals officers often deal with complex financial issues and negotiate detailed agreements, the introduction of AI is likely intended to support administrative tasks rather than replace human decision-making.
At this stage, the new AI tools are expected to handle background work such as pulling case summaries, reviewing documents, organizing files, and supporting legal staff. This type of assistance could lighten the load for employees who are already stretched thin, though it remains unclear how much responsibility these AI agents may eventually take on.
Salesforce Positions AI as a Support Tool, Not a Replacement
Salesforce, the technology provider behind the new AI integration, has emphasized that these tools are built to complement human staff rather than automate complex tax decisions. The company has signaled that it does not promote using AI to process returns or make major determinations without human involvement. Instead, its platform is designed to serve as an internal assistant—surfacing information for employees more quickly and helping reduce the time spent combing through large volumes of documents.
This approach reflects a broader trend in government agencies, many of which are experimenting with AI to streamline administrative work amid staffing shortages. Still, there is ongoing concern that introducing AI during a period of mass workforce reductions increases the likelihood that automation will gradually replace human roles, especially as budget pressures intensify.
IRS Workforce Shrinks to Critical Levels
The IRS was already facing staffing difficulties before the most recent cuts, but its operational capacity dropped sharply after DOGE-led actions earlier this year. The agency lost more than a quarter of its staff in a matter of months, affecting departments responsible for everything from customer service to complex auditing. The government shutdown further strained the agency by placing nearly half its employees on furlough.
A report by the Treasury Inspector General for Tax Administration shows how significant the losses have been. The IRS now has only about two-thirds of the tax auditors it employed in 2024—a troubling development, considering auditors are essential for ensuring high earners and corporations pay what they owe. Fewer auditors typically lead to fewer audits, which in turn reduces government revenue.
Research from Better IRS underscores just how costly these reductions could be. The group’s analysis found that every dollar invested in auditing the top 0.1% of earners can yield up to $26 in recovered taxes. Meanwhile, the IRS previously estimated that with full resources, it could recoup more than $561 billion in unpaid taxes over a ten-year period. With staffing now severely diminished, much of that potential revenue may go uncollected.
