Mass Layoffs Loom at IRS: 7,000 Probationary Workers to be Cut
The Internal Revenue Service (IRS) is reportedly planning to lay off approximately 7,000 probationary workers starting Thursday. The layoffs will affect employees who have been with the agency for less than a year and have not yet obtained full civil service protection.
Scope and Impact
The layoffs represent approximately 7% of the IRS’s workforce, which currently stands at around 95,000 employees. The cuts will impact a wide range of positions, from revenue agents to auditors to IT specialists, across the country.
It remains unclear how the layoffs will affect tax collection services at the IRS, which is responsible for processing over 140 million tax returns annually. However, the agency is reportedly retaining several thousand probationary employees who are considered essential for processing returns.
Compliance Department Hit Hard
According to sources, the job cuts will primarily affect employees in the compliance department, which oversees the filing, payment, and timely submission of tax obligations. This could potentially impact the agency’s ability to ensure compliance and collect taxes effectively.
Government Efficiency Drive
The layoffs are part of the Trump administration’s efforts to increase government efficiency and reduce wasteful spending. The Department of Government Efficiency has been tasked with reducing the federal workforce, which has led to the termination of many recent hires.
Return to In-Person Work
The layoffs come shortly after President Trump ordered federal employees to return to in-person work by early February or face termination. This decision has raised concerns among IRS employees, particularly those involved in the upcoming tax season.
Buyout Offer Withheld
IRS employees involved in the 2025 tax season were recently informed that they would not be eligible to accept the Trump administration’s buyout offer until mid-May, after the taxpayer filing deadline. This has further exacerbated the uncertainty and anxiety among the workforce.
Undoing Biden’s Inflation Reduction Act
The workforce reductions will partially undo the Biden administration’s Inflation Reduction Act, which devoted $80 billion to hire 87,000 new IRS agents. The Oversight Committee has claimed that this funding was primarily used to target middle-class Americans.
Improved Service and Reduced Wait Times
Despite the impending layoffs, the IRS has reported improvements in service performance and phone wait times over the past two filing seasons. The agency has attributed these improvements to increased staffing and investments in technology.
Conclusion
The mass layoffs at the IRS are a significant event that could have far-reaching implications for tax collection and service delivery. The full impact of these cuts remains to be seen, but they raise concerns about the agency’s ability to fulfill its mission effectively.
