IRS to slash thousands of workers off the payroll: report

IRS Layoffs Spark Concerns as Tax Season Heats Up

The Internal Revenue Service (IRS) is reportedly cutting thousands of probationary workers just as the 2025 tax season is getting underway, according to a report by The Associated Press. This move comes at a critical time, as the IRS prepares to handle over 140 million tax returns. The layoffs are part of a broader effort by the Trump administration to reduce the federal workforce, with instructions issued to agencies to terminate most probationary employees who have not yet secured civil service protection. While the exact number of affected workers remains unclear, the impact could be significant, potentially affecting hundreds of thousands of people.

Trump’s Workforce Reduction Measures Intensify

In addition to the probationary worker cuts, President Donald Trump announced on January 29 that federal employees who fail to return to in-person work by early February could face termination. This directive is part of a larger push to shrink the federal workforce and reduce government spending. To ease the transition, a buyout offer has been extended to employees, with approximately 65,000 federal workers already accepting the offer. However, IRS employees involved in the 2025 tax season, which began on January 27, are not eligible for the buyout until after the taxpayer filing deadline, according to a recent letter sent to IRS staff.

Lawmakers Push Back Against Trump’s Buyout Plan

The Department of Government Efficiency (DOGE), tasked with eliminating wasteful spending and boosting government efficiency, aims to cut $2 trillion from the federal budget by slashing programs and reducing the federal workforce. Lawmakers from states with the highest concentrations of federal workers have expressed concerns about the potential consequences of these cuts, particularly for the IRS. Despite these challenges, the IRS has reported significant improvements in recent tax filing seasons, with service levels reaching about 85% and wait times on main phone lines averaging less than five minutes. Taxpayer Assistance Centers across the country have also seen a notable increase in the number of taxpayers served.

IRS Investments and Improvements Under Fire

The Biden administration’s Inflation Reduction Act allocated $80 billion to the IRS, with funds designated to hire 87,000 new agents. However, the House Oversight Committee has criticized the move, claiming that the new agents are disproportionately targeting middle-class Americans. IRS Commissioner Danny Werfel has defended these investments, highlighting the historic progress made in improving taxpayer services. Werfel emphasized that while these advancements are important, they are just the beginning of what the IRS needs to do to modernize the nation’s tax system.

Tax Season 2025: Challenges and Uncertainties

As the IRS gears up for the 2025 tax season, concerns are mounting about the impact of the layoffs and workforce reductions. With the agency expecting to process over 140 million tax returns, any disruptions to its operations could have far-reaching consequences for taxpayers. The IRS has introduced new tools and features to help taxpayers file their returns more efficiently, but the loss of thousands of probationary workers could strain the agency’s resources. The exact number of layoffs remains uncertain, and neither the IRS nor the Department of Treasury has responded to requests for comment on the matter.

The Bigger Picture: Government Efficiency vs. Taxpayer Service

The Trump administration’s push for government efficiency and budget cuts has sparked a heated debate about the balance between reducing federal spending and maintaining essential services. While the goal of trimming wasteful expenditures is laudable, critics argue that the cuts to the IRS workforce could undermine the agency’s ability to serve taxpayers effectively. As the 2025 tax season progresses, the impact of these layoffs will likely become clearer, raising important questions about the long-term implications for the IRS and the millions of Americans it serves.