The IRS is planning for an unprecedented shrinkage of the workforce by way of layoffs, buyouts, and attrition, with plans to cut almost 45,000 positions.
This is part of an aggressive push by the Trump Administration to shrink federal agencies and redirect the resources toward other government priorities, such as Homeland Security.
Major Layoffs Looming
The Trump Administration has ordered the IRS to develop a reduction-in-force strategy that would phase out nearly half of its 90,000 employees over the next couple of years, insiders say. While some will be laid off outright, others may be offered early retirement packages or encouraged to take buyouts.
These would mainly involve cuts in the administrative positions, enforcement divisions, and call centers; thus, customer service, audits, and processing of returns would be significantly impacted. Another factor is the timing: many of the layoffs would hit at the peak of tax season, which could further delay refunds.
Why Is This Happening?
Decreasing the size of the federal workforce has been one of President Trump’s prime focuses for his second term. The Department of Government Efficiency, which is leading the administration’s effort, classified the IRS as an agency that is overstaffed and that can be reorganized to “maximize efficiency.”
The administration says new technology and automation will reduce the need for human auditors and customer service agents. Critics, however, caution that the strategy will result in a decline in tax compliance, rising fraud, and huge backlogs in the processing of taxes.
What’s Next for IRS Employees?
The employees who will be laid off have limited options. Some of them may be offered transfers to other federal agencies, while many will be pushed into jobs in the private sector or early retirement. Already, the National Treasury Employees Union has vowed to try to block the cuts, saying gutting the IRS will cost taxpayers more and boost the federal deficit in the long run.
For the time being, how exactly the layoffs will take place is yet to be determined, but employees of the IRS have been advised to prepare for significant changes in the coming months.
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