IRS Communications and Liaison saw a 44% staffing cut under President Trump, so the tax professional community should be prepared to educate clients – and taxpayers, generally – about tax provisions, including changes under the July 4 tax act.
Terry Lemons, the longtime chief at Communications and Liaison who left the agency in February, said that his former team has seen “a really deep cut.” Communications and Liaison is charged with everything from writing news releases, to “doing social media,” to outreach to tax professional groups, Lemons explained at a July 24 American Institute of CPAs (AICPA) town hall.
IRS Cuts
The Treasury Inspector General for Tax Administration (TIGTA) reported that as of May 2025, the IRS saw a 25% reduction in its workforce compared to February. That includes staff losses due to Reduction in Force actions, as well as staff who retired, separated, or took part in Deferred Resignation Programs.
But according to Lemons, IRS Communications and Liaison was hit even harder, losing 44% of its staff. He added that it’s “ironic that this area has been cut so much.” That’s because now, the agency has a new tax act (P.L. 119-21), previously called the One Big Beautiful Bill to educate tax professionals and the public about.
And more staffing cuts at the IRS may be ahead. AICPA’s Melanie Lauridsen noted that the Trump administration has proposed a 20% cut to the agency’s budget, while the House is proposing an even steeper 23% cut.
However, Lauridsen added, under the administration’s budget, taxpayer services would see a 30% budget increase. Meanwhile, the House proposal would maintain the current taxpayer services budget level.
Tax Act Implementation Challenges
The IRS likely will have a heavy lift to implement the new tax act. That’s particularly true for provisions that are more than just 2017 Tax Cuts and Jobs Act extensions. Lemons said this is “the very time where there’s going to be a vast need for communications to get out.”
The tax act requires “a lot of changes” across “the whole swath of IRS operations,” said Lemons. Beyond the communications element, legal guidance, new and revised forms, website changes, and IT programming updates will be needed.
Lemons spoke highly of IRS staff, noting “they always step up.” And they’ve likely “delivered more bills successfully over the last 25 years than any other federal agency,” he added. But having lost about 25,000 employees this year – with the looming risk of even more losses under the budget proposals – the IRS is facing “really unique challenges” as it tries to implement the new tax act.
The tax professional, payroll, and software communities need information quickly about changes in tax law and processes. But the tax professional community should also be prepared to “help educate clients and taxpayers about what this bill really means,” said Lemons. That’s because he expects “less communications coming out of the IRS with these staff cuts.”
And with a dearth of IRS communications, the tax community should also be on the lookout for “scammers and bad information coming out on social media,” said Lemons.
On a positive note, Lemons saw it as “a really good sign” that the IRS already issued a fact sheet on tips, overtime, and more – and that Chief Counsel “committed” to providing some definitions within 90 days. He also anticipates the agency will provide transition guidance and information on safe harbors soon.
The July 4 enactment date is also helpful, as the IRS has a longer runway to implement changes than, say, the Tax Cuts and Jobs Act which was signed in December. “The extra time here is badly needed, given the scope of this bill,” said Lemons.
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