IRS workforce is more diverse than the national civilian labor force. So why is GAO criticizing the tax agency’s DEI programs?

The IRS’ workforce in 2022 was more diverse than the federal workforce as a whole as well as the national civilian labor force in terms of representation of women and individuals from historically disadvantaged racial or ethnic groups. 

However a Government Accountability Office report published on Monday found disparities in diverse representation at more senior levels and argued current IRS plans to address the gaps have significant shortcomings. 

GAO reported that IRS’ workforce — which consists of approximately 90,000 employees, and is expected to grow because of an infusion of funds from the 2022 Inflation Reduction Act —  generally became more diverse between fiscal years 2013 and 2022. But that progress didn’t persist across ranks. 

“In general, the more senior the level, the lower the representation of women, employees from historically disadvantaged racial or ethnic groups and persons with disabilities in each of the 10 fiscal years we reviewed,” investigators wrote. 

For example, 71.9% of IRS employees in grades [general schedule]-10 and below were women in fiscal 2022 compared to 45.6% of individuals at the executive level. 

Other noteworthy findings include: 

• The decreasing representation at senior levels for Black or African American and Hispanic or Latino employees was largely tied to fewer women of those backgrounds serving in those roles. In contrast, the increasing representation at senior levels of white employees was driven largely by there being more white men in those positions.
• Women, employees from historically disadvantaged racial or ethnic groups and individuals with disabilities were generally less likely to be promoted across multiple GS grades.
• IRS employees who are women earned 17% less than men and workers from historically disadvantaged racial or ethnic groups earned 6% less than their white counterparts. 

Investigators wrote that salary disparities existed even after controlling for GS grade level and occupation. 

Over the review period, IRS did identify certain causes for diversity, equity, inclusion and accessibility setbacks. Between fiscal years 2017 and 2022, for instance, the agency noted that there was low participation by Hispanic or Latino, Asian and Black or African American employees in an executive readiness development program. 

GAO criticized IRS’ plans to resolve those setbacks, in particular that they are spread out among three different strategies. 

“​​With multiple plans articulating differing DEIA goals, IRS’s DEIA efforts are neither clear nor transparent, hindering decision-makers’ ability to set priorities, allocate resources and restructure efforts, as needed, to ensure effective DEIA advancement,” investigators wrote. 

They also found the agency conducted limited stakeholder consultation and that staffing issues in IRS’ Office of Equity, Diversity and Inclusion contributed to the issue. 

GAO made eight recommendations, including that IRS create a unified DEIA strategic plan and set performance measures for goals in the strategy. IRS agreed with each of the recommendations. 

Congressional Republicans in June introduced legislation that would bar federal funds from being used toward DEI efforts.