The IRS is making a drastic move – cutting up to 40% of its workforce after this year’s tax filing season concludes.
According to an internal memo obtained by Federal News Network, the IRS will begin sending out bi-weekly Reduction in Force (RIF) notices starting this week. These cuts will dramatically shrink the IRS workforce from 102,000 employees to a leaner 60,000 to 70,000.
This reduction will happen in two phases, and certain departments will feel the brunt of the cuts. Specifically, taxpayer services and compliance are expected to experience the largest reductions, especially in the first phase. The memo highlights that the IRS Taxpayer Experience Office, Transformation Strategy Office, Online Services Office, and Office of Civil Rights will face severe staffing reductions. In the second phase, these same offices will be consolidated as part of a broader restructuring effort.
The IRS plans to evaluate how Phase 1 impacts operations before proceeding with Phase 2 of the reductions, slated for August. During this gap between phases, career executives within the IRS will undergo an additional RIF process. This phased approach aims to address inefficiencies while shifting the agency’s focus to more targeted priorities.
In addition to the RIF, around 20,000 IRS employees have already taken the Treasury Department’s second “deferred resignation” offer, which allows them to leave voluntarily. This is part of the agency’s effort to downsize while still offering some employees an opportunity to exit without the forced cuts.
The major staffing reductions come as the IRS continues to face pressure to modernize its systems and improve services, particularly as the tax filing season continues to generate frustration from taxpayers. While these cuts are seen as a cost-saving measure, there are concerns about how this will affect the agency’s ability to efficiently serve the public and enforce tax compliance.
What do you think of the IRS’s decision to cut so many jobs? Will this make it harder for taxpayers to get help when they need it?
