The US Internal Revenue Service (IRS) will lay off thousands of probationary workers in the middle of tax season. According to sources, these job cuts could begin as early as next week.
Trump Administration’s Workforce Reduction
Meanwhile, the Trump administration has intensified efforts to shrink the federal workforce. It has ordered agencies to fire most probationary employees who lack civil service protection. However, officials have not confirmed the exact number of IRS employees affected.
Earlier, the administration introduced a “deferred resignation program” to speed up workforce reductions. Under this plan, employees who accepted the buyout would continue receiving paychecks until September 30. Notably, the deadline to opt in was February 6.
However, IRS employees working on the 2025 tax season cannot accept the buyout until after the filing deadline. A recent letter to IRS staff confirmed this restriction.
Impact on Tax Season
As the tax season progresses, these layoffs could create challenges. The 2025 tax season officially began on January 27, and the IRS expects over 140 million tax returns to be filed before the April 15 deadline.
Previously, the Biden administration had allocated $80 billion to the IRS through the Inflation Reduction Act. This funding aimed to hire thousands of workers, improve customer service, and modernize technology. Nevertheless, Republicans have successfully rolled back some of these funds.
Legal Challenge Against Musk’s Plans
At the same time, Elon Musk and his Department of Government Efficiency (DOGE) have pushed for deeper spending cuts. Musk has even suggested eliminating entire government agencies.
However, several officials are resisting these efforts. Attorneys general from 14 states have filed a lawsuit, arguing that DOGE has overstepped its authority.
The lawsuit, filed in Washington federal court, claims that only a Senate-confirmed official can make such decisions. It also highlights constitutional limits on presidential power.
For now, the IRS has not issued an official statement on the upcoming layoffs.
