RALEIGH, (SGRToday.com) - IRS Commissioner John Koskinen laid out a key challenge for his agency, and it's related to the aging of his agency's workforce.

"Essentially, the IRS is facing its own version of the baby bust," said Koskinen, as reported by federalnewsradio.com. "The situation makes it extremely difficult, if not impossible for the IRS to develop the next generation of leaders. We estimate that by next year, 41 percent of our front-line managers and 61 percent of our executives will be eligible to retire. With those departures go knowledge and expertise that will be impossible to replace, especially if our severe underfunding continues."

Koskinen lays the blame on budget cuts and hiring freezes that fail to make the agency a desirable place for younger works to sign on. According to his prepared remarks:

"The agency continues to be in a very difficult budget environment since we are the only major agency functioning basically at the post-sequester level rather than having been moved back toward the pre-sequester level of funding. Since Fiscal 2010, IRS appropriations have been cut by about $900 million and we have 10,000 fewer employees even as our responsibilities continue to expand," he said in is prepared remarks.

Koskinen's full prepared remarks can be found at irs.gov.