With the approval of Congress and the Clinton Administration, the IRS currently has about a third fewer permanent employees than it did in 1988. But individual and business income tax return filings are up. At the same time, the agency has been devoting an increasing share of its shrinking resources to taxpayer services like providing information to confused taxpayers. Computer matching is down.
Audits are down.
Collection activities such as levies and seizures are down. Also substantially off are criminal indictments and civil filings against non-complying taxpayers.