The IRS is bracing for a massive workforce reduction, with plans to cut nearly 45,000 jobs through layoffs, buyouts, and attrition, this move is part of the Trump administration’s aggressive push to shrink federal agencies and redirect resources toward other government priorities, like Homeland Security.
Major Layoffs Incoming
According to insiders, the IRS has been directed by the Trump Administration to draft a reduction-in-force (RIF) strategy that would see nearly half of its 90,000 employees phased out over the next few years. While some will be laid off outright, others may be offered early retirement packages or encouraged to take buyouts.
The cuts primarily target administrative roles, enforcement divisions, and call centers, which could significantly impact customer service, audits, and tax return processing. The timing is also concerning, many of these layoffs could hit during the peak of tax season, potentially causing further delays in IRS refunds.
Why Is This Happening?
President Trump’s federal workforce reduction strategy has been a cornerstone of his administration’s second term. With the Department of Government Efficiency leading the charge, the IRS has been identified as an overstaffed agency that can be restructured to “maximize efficiency.”
The administration argues that new technology and automation will reduce the need for human auditors and customer service agents. However, critics warn that this approach could lead to a drop in tax compliance, increased fraud, and major backlogs in tax processing.
What’s Next for IRS Employees?
Employees facing layoffs have few options. While some might be transferred to other federal agencies, many will be forced into private-sector jobs or early retirement. The National Treasury Employees Union (NTEU) has already vowed to challenge the cuts, arguing that gutting the IRS will hurt taxpayers and increase the federal deficit in the long run.
For now, the exact timeline of layoffs remains unclear, but IRS employees have been advised to prepare for major changes in the coming months.
