IRS Reportedly Preparing For MASSIVE Layoffs

The Internal Revenue Service (IRS) is drafting plans to slash roughly 50% of its 90,000-person staff, the Associated Press reports.

According to the outlet, the workforce reductions will consist of “layoffs, attrition and incentivized buyouts.”

#BREAKING: IRS plans to cut up to 45,000 workers from its roughly 90,000-person workforce – AP

— Eric Daugherty (@EricLDaugh) March 4, 2025

From the Associated Press:

The layoffs are part of the Trump Administration’s efforts to shrink the size of the federal workforce through billionaire Elon Musk’s Department of Government Efficiency by closing agencies, laying off nearly all probationary employees who have not yet gained civil service protection and offering buyouts to almost all federal employees through a “deferred resignation program” to quickly reduce the government workforce.

A reduction in force of tens of thousands of employees would render the IRS “dysfunctional,” said John Koskinen, a former IRS commissioner.

The federal tax collector employs roughly 90,000 workers total across the United States, according to the latest IRS data. People of color make up 56% of the IRS workforce, and women represent 65%.

Already, roughly 7,000 probationary IRS employees with roughly one year or less of service were laid off from the organization in February.

The organization also offered IRS employees — along with almost all federal employees across the government — “deferred resignation program” buyouts, though IRS employees involved in the 2025 tax season were told earlier this month that they would not be allowed to accept a buyout offer from the Trump administration until mid-May, after the taxpayer filing deadline.

JUST NOW: The IRS is drafting plans to cut as much as half of its workforce.

Via: AP pic.twitter.com/5NV3WauJu8

— Ian Jaeger (@IanJaeger29) March 4, 2025

BREAKING: IRS drafting plans to fire half of its 90,000-person workforce. pic.twitter.com/nl6SQNKro3

— Benny Johnson (@bennyjohnson) March 4, 2025

Pittsburgh Post-Gazette reports:

Mr. Koskinen and six other former IRS commissioners wrote in the New York Times earlier this month: “Aggressive reductions in the I.R.S.’s resources will only render our government less effective and less efficient in collecting the taxes Congress has imposed.”

According to a White House memo sent to federal agencies in late February, agencies are to develop a report by March 13 on its reduction in force plans — but it is unclear whether the White House will approve the IRS’ reorganization plan and over what period of time it would be implemented.

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Representatives for the White House, the Treasury Department and IRS did not respond to an Associated Press request for comment. The New York Times first reported the deliberations.