The IRS is reportedly planning to reduce its workforce by up to 50%, which could involve a combination of layoffs, voluntary buyouts, and attrition, according to sources familiar with the matter.ย
These reductions are part of broader efforts initiated by the Trump administration to decrease the size of the federal workforce, under the direction of the Department of Government Efficiency led by Elon Musk. The initiative includes closing agencies, cutting probationary employees who haven’t yet gained civil service protection, and offering buyouts to federal workers through a โdeferred resignation program,โ according to AP.ย
This drastic reduction could potentially disrupt the IRS, with former IRS Commissioner John Koskinen warning that such cuts would lead to a โdysfunctionalโ agency.ย
Currently, the IRS employs about 90,000 people across the United States. Of these, 56% are people of color, and 65% are women. In February alone, around 7,000 probationary IRS employees โ those with less than one year of service โ were laid off.
The reductions are expected to extend beyond layoffs. The IRS, along with many other federal agencies, was offered the opportunity to participate in the administrationโs buyout program.ย
However, IRS employees working through the 2025 tax season have been informed that they will not be able to accept buyout offers until mid-May, after the tax filing deadline has passed.
In addition to workforce reductions, the Trump administration is also planning to assign IRS workers to support the Department of Homeland Securityโs immigration enforcement efforts. Secretary Kristi Noem of DHS requested the Treasury Department to lend IRS personnel for this purpose in February.
The drastic cuts to the IRS have raised concerns about the agencyโs ability to effectively perform its duties. Koskinen, along with six other former IRS commissioners, wrote in a New York Times op-ed that reducing the agencyโs resources aggressively would severely hinder the governmentโs ability to collect taxes, potentially undermining efforts to go after wealthy tax evaders.
While the White House has requested that federal agencies submit plans for workforce reductions by March 13, it remains unclear whether the administration will approve the IRSโs proposed reorganization or the timeline for its implementation. Representatives from the White House, the Treasury Department, and the IRS declined to comment on the matter.
