The Inland Revenue Deputy Commissioner says its proposal to cut regional staffing is not set in stone.
The IRD on Thursday morning announced that almost 200 staff could lose their jobs as part of a campaign to make doing business easier and more efficient.
The department says work not requiring face-to-face contact should be grouped in larger centres, allowing regional sites to increase their focus on education and giving advice.
It has begun consulting staff in Rotorua, New Plymouth, Napier, Nelson and Invercargill who will be affected.
Some 191 fulltime equivalent positions could be disestablished and implementation of the changes would begin early next year.
Inland Revenue deputy commissioner Carolyn Tremain says there has been "tremendous amount" of research done over the past 12 to 18 months with a lot of staff input.
Ms Tremain says the proposal is still out for consultation. "If something arises out of that process that would change the numbers, then that is what will happen."
The Public Service Association says regional communities will suffer if the department goes through with staffing cuts.
National secretary Richard Wagstaff believes they are unnecessary, as there is plenty of work for regional workers.
Listen to PSA national secretary Richard Wagstaff
Listen to Checkpoint interview with Carolyn Tremain