IRS Begins Mass Layoffs, Cutting 7,000 Jobs Amid Tax Season
The IRS has begun laying off thousands of probationary employees, a move that is expected to significantly impact the agency’s operations during tax season. Approximately 7,000 workers—about 7% of the IRS workforce—are losing their jobs, with 5,000 of the cuts coming from enforcement and collections.
The layoffs come as part of a broader effort by the Trump administration and Department of Government Efficiency (DOGE) to shrink the federal workers. The IRS, which had been rebuilding its staff to improve taxpayer services and strengthen enforcement, now faces uncertainty as filing season continues.
Many of those laid off were recent hires brought in to modernize the agency and enhance enforcement efforts, including audits of high-income earners and stricter compliance for businesses. Critics argue that the job cuts will weaken the IRS’s ability to assist taxpayers, process refunds and collect revenue.
Employees reported emotional scenes at IRS offices, with managers and staff struggling to process the sudden dismissals. Some workers were notified after being locked out of their computers, while others were told to wait for termination letters in the mail.
The move follows other large-scale layoffs across federal agencies, including the National Park Service and the Department of Veterans Affairs. Additionally, around 75,000 federal employees accepted buyouts through the administration’s “deferred resignation” program.
The IRS and the Treasury Department have not commented on how these layoffs will affect taxpayer services. However, employee advocates warn that losing experience personnel at such a critical time could delay refunds, increase processing times and disrupts enforcement initiatives. With tax season in full swing, the long-term effects of these cuts remain uncertain.
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