IRS Commissioner John Koskinen recently announced the extent and effect of the significant budget cuts facing the IRS in 2015. Noting that the IRS will now be required to operate on the lowest budget since 1998 (after adjustments for inflation were made), the IRS will be significantly limited regarding some of its work due to necessary cutbacks. In addition to a reduction in staff due to a continued hiring freeze and attrition, taxpayers can expect longer wait times for the closure of tax audits, longer hold times on telephone calls to the IRS, and even a longer wait time for refunds to be processed. However, there may also be a bright side to some taxpayers if the reduction in personnel will also mean that fewer audits can be initiated or fully investigated by IRS personnel. As a last resort, Commissioner Koskinen states the IRS may even have to close for a few days in order to meet its budget.