IRS audits collected $3.5 billion less in fiscal 2025 as the agency shed thousands of auditors and other agency staffers.
Page F3From§Eachthe early bird edition — 1 September 2026
IRS audit revenue plunges after mass layoffs, parents pay $10K for homeschool gear
The IRS audit revenue has dropped sharply following mass layoffs, according to the watchdog report. At the same time, parents are spending upwards of $10,000 on back-to-school gear, even for homeschooled students. The ledger is clear: enforcement goes soft, spending goes hard, and the tax gap widens. Audit rates fall, compliance drops, and the cost of education—public or private—lands on the household, not the state. The arithmetic: fewer audits, less revenue collected, more dollars shelled out by families. The gap sits in the receipts—one side measured by federal revenue, the other by a backpack invoice. The question is not who pays, but who gets paid: hon, it isn't the parents buying Chromebooks.
“The IRS stops chasing the big fish, and parents pay private-school money for homeschool backpacks. Somebody's getting a tax break, but it's not the folks buying spiral notebooks.”
“Well, the reduced audit revenue just means the IRS is more focused on efficiency. As for parents spending—it's a sign of prosperity, right? Wait, are we saying audits and school supplies are connected? That's not—well, maybe a little.”
The receipts
Teachers spent an average of $895 of their own money on classroom supplies last school year AdoptAClassroom.org 2025 Teacher Spending Survey
The parents spending upwards of $10K on back-to-school gear, despite some being homeschooled"She’s the new kid in school and wants to make a good impression."
This page is a back-issue: the story as it ran, receipts as they were. The current edition is at the front.