The Trump administration significantly shrank the IRS last year, and now that’s starting to show up in shrinking audit numbers.

At a high level, new Internal Revenue Service numbers reveal there was a gradual decrease in audit activity during a span of time covering the first nine months of the Trump administration, according to new data released Friday.

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A closer look shows a deeper shift happening under the surface.

Overall, IRS agents sought $35.7 billion in extra taxes and assessments when they audited taxpayers during fiscal year 2025, according to the agency’s yearly report on its operations.

That’s $1.1 billion less than auditors sought a year earlier. It’s a nearly 3% decrease. It’s also pocket change for an agency that collected more than $5.3 trillion in revenue from October 2024 to September 2025.

There was also a notable shift in whom the IRS asked for additional taxes from the end of the Biden era to the start of the Trump era. The tax collector turned up the heat on individuals while easing off on companies.

IRS agents asked individual taxpayers to pay $11.3 billion in extra income tax as a result of audits. That’s $1.8 billion more compared with the last full fiscal year under the Biden administration.

Meanwhile, the IRS recommended corporations pay almost $12 billion extra in the 2025 fiscal year. That’s approximately $3 billion less compared with the previous fiscal year.

The new numbers are part of the IRS’s annual data book, showing everything from phone service and website visits to audit rates and assessed penalties.

In recent years, the IRS has been on a roller coaster. During the Biden era, the agency received a multibillion-dollar budget boost to increase enforcement of tax payments by corporations and scofflaw taxpayers.

The Trump administration reversed the build-up in a big way. Officials such as Treasury Secretary Scott Bessent said the plan was to right-size the staff and introduce more technology to sniff out unpaid tax bills. Following staff cuts at the agency, lawyers and accountants noticed an uptick in abruptly ended audits.