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Perhaps the most famous folk story in American history is that of John Henry.

John Henry was a steel-driving man.

The tale of John Henry is memorialized in a song recorded by many artists, among them Johnny Cash.

Baseball great Ted Williams named his only son John Henry Williams after the folk legend.

John Henry is a tale of man versus machine 鈥� and speaks to the dignity of human labor in the age of the Industrial Revolution.

John Henry competed against a steam-powered rock drill. John Henry won the race. But the effort he expended led to his death.

This is so well-grounded in American lore that even SpongeBob SquarePants took on a Patty Gadget at the Krusty Krab restaurant. Sponge defeated the machine.

We live in a new revolution, that of computers and artificial intelligence. In this time, we defer to the knowledge of the wealthy.

Elon Musk is the wealthiest of the wealthy. He believes that AI will replace human labor.

Musk鈥檚 vision was carried out early in President Donald Trump鈥檚 second term. Workers were fired with the belief that their work could be done by AI.

As part of the so-called 鈥淒OGE鈥� effort, the IRS lost 31,273 employees from January 2025 to January 2026.

This represented about 30% of the IRS workforce. Losses were fairly evenly spread across six IRS business units and six job series.

New Mexico lost 37 employees, which was more than 35% of the state workforce. Only North Dakota lost less than 25% of its workforce.

Texas, the second-largest state by population, was the 鈥渆fficiency鈥� winner with a loss of 3,752 employees.

A big new tax bill was passed in the middle of all this. In 2025, the IRS was led by two commissioners, five acting commissioners and one CEO.

Fewer employees and a wild succession of leadership changes. No problem when a machine can beat a man. Let鈥檚 go to the videotape.

On one hand we have January 2025, the start of the filing season for 2024 tax returns. On the other, we have January 2026, the start of filing for 2025 tax returns.

Current IRS leadership says the 2026 filing season 鈥済enerally proceeded well overall,鈥� although it was 鈥渇ar from flawless.鈥�

The plan for these workforce reductions is to replace humans with machines. You, the taxpayer, will interact with a computer rather than a person.

This will increase efficiency. You will file your return and receive information online or by telephone, and you will like it.

So far, it鈥檚 not so good. The IRS has eight phone lines that should be called by taxpayers and tax practitioners.

The main line is the 鈥淚ndividual Income Tax Services鈥� one. There are separate lines for collections for individuals and collections for small business.

There is a line for ID theft. There is another for 鈥渜uestionable credit鈥� claims. The Center for Taxpayer Rights tested each of the eight phone lines.

Tests of these systems have been done annually from 2018 to 2026. IRS measures the main service line by 鈥渁verage speed of answer,鈥� or ASA.

The ASA numbers do not include people who simply gave up after waiting for someone to answer.

Nonetheless, the ASA performance was down 15% year-over-year for 2024 returns (filed in 2025) to 2025 returns (filed in 2026).

Collection service lines were way down, with average wait times over an hour and five of eight callers being disconnected by the service.

Anyone who has received a computer-generated IRS letter explaining an issue with their tax return was probably confused about what the problem was.

The logical response would be to call the IRS service number to ask about the letter and how the taxpayer could proceed.

That has not worked well. Similar problems have resulted for those taxpayers who wanted or needed a paper check for their tax refund.

To be fair, many people are happy dealing with the IRS online services or a computer phone response. Others are not happy with this.

The 鈥渃orrect鈥� answer is to provide service to both these groups. A workforce reduction of 30% seems to have disadvantaged the 鈥減eople鈥� group.

Jim Hamill is the director of tax practice at Reynolds, Hix & Co. in Albuquerque. He can be reached at jimhamill@rhcocpa.com.