The Internal Revenue Service (IRS) announced on Thursday the termination of approximately 6,000 employees, representing about 6% of its workforce, during the peak of the tax-filing season. This action is part of President Donald Trump’s extensive initiative to reduce federal government size and expenditure, led by tech entrepreneur Elon Musk through the Department of Government Efficiency (DOGE).
The layoffs primarily affect employees hired during former President Joe Biden’s administration, which had expanded the IRS to enhance enforcement on affluent taxpayers. The agency’s workforce had grown to roughly 100,000 from 80,000 under Biden’s tenure. Independent budget analysts suggested that this expansion could increase government revenue and help reduce trillion-dollar deficits. However, Republican leaders argue that such growth could lead to increased scrutiny of average American taxpayers.
The affected employees are in their probationary period, offering them fewer job protections than tenured staff. Despite the critical timing, with the April 15 tax filing deadline approaching, the IRS has proceeded with these cuts. The 2025 tax season began on January 27, with over 140 million individual tax returns expected by the deadline.
Positions eliminated include revenue agents, customer service representatives, specialized auditors, and IT professionals across all states, Puerto Rico, and Washington, D.C. The IRS will retain several thousand probationary employees essential for processing tax returns and taxpayer support.
This reduction is part of a broader effort by the Trump administration to streamline the federal workforce, targeting various agencies, including those regulating industries and tax collection. Musk’s DOGE team has also canceled contracts totaling approximately $8.5 billion, focusing on areas like foreign aid and diversity training, aligning with President Trump’s goal to cut at least $1 trillion from the $6.7 trillion federal budget. Democratic critics contend that these actions overstep constitutional boundaries and undermine essential government programs, adversely affecting middle-class families.
