Robert Besser
09 Mar 2025, 03:55 GMT+10
WASHINGTON, D.C.: The IRS is considering laying off up to half of its 90,000-person workforce through layoffs, attrition, and buyouts, according to sources familiar with the plan.
The cuts are part of the Trump administration's initiative to downsize the federal workforce through the Department of Government Efficiency. The plan includes closing agencies, laying off probationary employees without civil service protection, and offering a "deferred resignation program" to incentivize voluntary departures.
A workforce reduction of this scale would make the IRS "dysfunctional," warned former IRS Commissioner John Koskinen.
The IRS currently employs around 90,000 workers, with people of color making up 56 percent of the workforce and women representing 65 percent. In February, approximately 7,000 probationary employees with one year or less of service were already laid off.
Employees involved in the 2025 tax season have been informed that they will not be eligible for buyouts until mid-May, after the tax filing deadline.
In addition to the layoffs, the Trump administration has proposed reassigning IRS employees to the Department of Homeland Security to assist with immigration enforcement. In a February letter, DHS Secretary Kristi Noem requested IRS workers be temporarily loaned to support immigration crackdown efforts.
Koskinen and six former IRS Commissioners voiced concerns about the cuts in a New York Times op-ed, stating: "Aggressive reductions in the IRS's resources will only render our government less effective and less efficient in collecting the taxes Congress has imposed."
A White House memo sent to federal agencies in late February requires them to submit workforce reduction plans by March 13. However, it remains unclear whether the IRS plan will be approved or how long implementation would take.
The White House, Treasury Department, and IRS have not responded to requests for comment. The New York Times first reported the deliberations.
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