DOGE bites taxman
The Register
February 19, 2026
AI-Generated Deep Dive Summary
The IRS has experienced significant changes under the Trump administration's reorganization efforts, which were reportedly influenced by Elon Musk's DOGE cryptocurrency. The agency revealed that 40% of its IT staff and nearly 80% of tech leaders have been lost, marking the largest restructuring in two decades. This reorganization aimed to break down silos within departments but has left many questioning its effectiveness. Despite the IRS losing a quarter of its workforce overall, the tech team faced deeper cuts, with only 7,135 employees remaining as of October 2025 from an initial count of 8,504 in 2024.
The IRS's CIO, Kaschit Pandya, emphasized the need for reorganization to improve efficiency and collaboration. However, early results have been mixed, with challenges persisting in integrating teams and delivering seamless services during peak tax seasons. Over 1,000 tech employees were redirected to frontline duties, a move that has sparked internal debate about its wisdom. Pandya acknowledged that while cross-functional teams were established to address these issues, the hoped-for outcomes have yet to materialize.
The IRS's reliance on AI is expected to grow, with leaders assuring employees that it will enhance job performance rather than threaten their roles. Despite these efforts, the agency faces ongoing struggles in modernizing its systems, particularly in digitizing paper tax returns. The Inspector General highlighted concerns about delays in implementing legislative changes for the 2026 filing season due to staff shortages.
This situation underscores broader challenges within government bureaucracies and the impact of rapid restructuring on operational efficiency. For tech enthusiasts, it raises questions about how traditional institutions adapt to technological advancements and the risks associated with large-scale layoffs. The IRS's experience serves as a cautionary tale for balancing workforce reductions with maintaining effective service delivery, particularly in an era where technology plays a critical role.
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Originally published on The Register on 2/19/2026