WASHINGTON (AP) The IRS is set to lay off approximately 7,000 employees across Washington and other locations in the country beginning Thursday, as informed by an anonymous source familiar with the agency's plans. These layoffs will primarily affect probationary workers who have been with the IRS for about one year or less, particularly impacting those in compliance departments. These compliance roles include responsibilities such as ensuring taxpayer adherence to the tax code, filing returns, and making tax payments.
These layoffs are part of the broader initiative by the Trump administration to reduce the size of the federal workforce. The Department of Government Efficiency has directed agencies to terminate nearly all probationary employees who have not secured civil service protection. This decision comes in the light of IRS employees being informed earlier this month that they would not be eligible for buyout offers from the Trump administration until mid-May, after the traditional taxpayer filing deadline.
The potential impact of these layoffs on tax collection services remains uncertain. As the principal revenue-collecting agency for the nation, the IRS was tasked during the Biden administration with targeting high-wealth tax evaders to generate supplementary income for the U.S., which currently faces a debt of $36 trillion. Notably, by the end of 2024, the IRS is projected to have collected over $1.3 billion in back taxes from wealthy individuals attempting to evade tax obligations.
Current IRS data indicates that the agency employs approximately 90,000 individuals nationwide. Among its workforce, racial minorities account for 56%, while women represent 65%. These layoff plans were made public amidst ongoing concerns about the agency's functionality, especially in light of its crucial role in managing the nation’s tax system and compliance.
Furthermore, the Trump administration has proposed reallocating IRS employees to assist the Department of Homeland Security (DHS) in immigration-related enforcement tasks. A recent request from DHS Secretary Kristi Noem to Treasury Secretary Scott Bessent indicated a need for IRS workers to support ongoing efforts for an immigration crackdown.
As of now, representatives from both the IRS and the U.S. Treasury have not responded to requests for comments regarding these developments. The IRS's future operational capabilities and effectiveness in tax collection may be called into question with such substantial layoffs taking place.
The implementation of these layoffs, combined with the shift of IRS workers to immigration enforcement, highlights the significant changes the agency is undergoing. As a vital body within the federal government, the decisions made regarding staffing and resource allocation at the IRS will undoubtedly have ramifications for the agency’s ability to enforce tax laws and ensure compliance going forward.
