IRS Cuts Probationary Workforce Amidst Tax Season
Introduction:
As tax season ramps up, the Internal Revenue Service (IRS) is reportedly cutting thousands of probationary workers, a move that could potentially impact hundreds of thousands of individuals. This decision, announced days after President Trump’s instruction to agencies to terminate probationary workers without civil service protection, has raised concerns regarding potential service disruptions.
Probationary Layoffs:
According to The Associated Press (AP), the IRS layoffs could affect hundreds of thousands of probationary workers, though the exact number is yet to be confirmed. This action aligns with the Trump administration’s directive to cut the federal workforce and eliminate wasteful government spending. Additionally, all federal employees were mandated to return to in-person work by early February, or face termination.
Tax Season Impact:
The timing of these layoffs raises concerns about their impact on the ongoing tax season. IRS employees involved in the 2025 tax season, which began on January 27th, are reportedly ineligible for the buyout offer until after the taxpayer filing deadline. This could lead to staffing shortages and potential delays in tax processing.
Background: IRS Staffing and Budget:
In January, the IRS announced its commitment to continuing the success of the previous two tax filing seasons, which saw improved service levels and reduced wait times. This progress was attributed to additional resources provided by the Biden administration’s Democrats’ Inflation Reduction Act, which allocated $80 billion for hiring 87,000 new IRS agents.
House Oversight Committee Criticism:
The House Oversight Committee has expressed concerns regarding the use of these funds, claiming that they were employed to target middle-class Americans. The committee’s September 2023 report highlighted the IRS’s focus on hiring agents who specifically targeted this demographic.
IRS Response:
The IRS has emphasized the improvements made during the previous two filing seasons, citing high service levels and quick wait times. Commissioner Danny Werfel has stated that these taxpayer-focused improvements represent the beginning of what the IRS needs to achieve. The agency anticipates receiving more than 140 million tax returns this season.
Conclusion:
The IRS’s decision to cut probationary workers has sparked concerns about potential disruptions to the ongoing tax season. The exact number of layoffs and their impact on staffing levels remain uncertain. The administration’s directive to reduce the federal workforce and mandate in-person work could further exacerbate these challenges. It remains to be seen how the IRS will address these concerns and maintain the improved service levels achieved in recent filing seasons.
