With IRS staff cuts from DOGE, am I less likely to get audited in 2026?

In the short term, overall audit rates are expected to decline further in 2026 due to significant IRS workforce reductions under the DOGE initiative. However, the IRS has not stopped auditing returns, and automated screening remains very active.

What happened to the IRS?

• DOGE-related cuts substantially reduced the IRS workforce in 2025-2026
• The IRS was already understaffed before these cuts
• The IRS is simultaneously deploying AI tools to compensate, which makes automated screening more efficient

What this means for audit rates:

• Overall individual audit rates have been historically low for years (under 0.5% for most wage earners)
• Correspondence audits (automated mail notices) continue regardless of staffing
• Complex audits requiring human agents (field audits, office audits) are more affected by staffing shortfalls
• High-income filers ($400K+) and pass-through entity owners remain IRS priorities

Red flags that still trigger automated audits:

• Large Schedule C losses — especially reported repeatedly with no profits
• High home office deductions relative to income
• Significant charitable contributions far exceeding your income level
• Unreported 1099 income — the IRS matches W-2s and 1099s automatically without any human involvement
• Crypto transactions — 1099-DA reporting is now active. Mismatches with your return trigger CP2000 notices automatically.
• Business meals and entertainment at unusually high percentages of revenue
• Suspiciously round numbers on all deductions

Bottom line: Do not cut corners. The IRS's automated systems match your return against third-party reporting (W-2, 1099, 1099-DA, 1099-B) without human involvement. Staffing cuts affect complex, high-touch investigations, not the automated CP2000 notices that catch unreported income. If you have legitimate deductions, document them and claim them without concern.