In a move that most people probably have seen coming, the IRS is reportedly drafting plans to cut its 90,000-person workforce by half. Sources familiar with the matter tell the Associated Press that the IRS plans to cut its workforce through layoffs, attrition, and incentivized buyouts.
Reduction plans are on par with the Trump administration’s priorities to slash the size of the federal workforce through the Department of Government Efficiency (DOGE).
Spearheaded by billionaire Elon Musk, DOGE is leading the Trump’s administration’s efforts by laying off probationary employees who have not gained civil service protection. DOGE is also closing agencies and offering all federal employees buyouts through a “deferred resignation program.”
The recent firings, however, are not sitting well with Americans—many of whom are worrying about grocery store prices, inflation, and the economy. A recent Rasmussen Reports study found that only 29% of American adults think it would be good for the economy if the federal government laid off 100,000 workers. Meanwhile, 48 percent of respondents, say a layoff like that would be bad for the economy.
According to the Associated Press, the IRS employs an estimated 90,000 nationwide. People of color make up 56% of the IRS workforce, and women make up 65%. So far,
the agency has laid off 7,000 probationary employees with one year or less of service. Most IRS employees, along with nearly all federal government employees, were offered buyouts through the “deferred resignation program.”However, employees involved in the 2025 tax season will not be allowed to accept a buyout offer until mid-May, about a month after the tax deadline.
For people who are not laid off, the Trump administration intends to lend IRS staff to the Department of Homeland Security to assist with immigration enforcement. A letter from Homeland Security Secretary Kristi Noem to Treasury Secretary Scott Bessent requested to “borrow IRS workers”
to help with the immigration crackdown.