IRS planning to cut nearly 50,000 jobs in the middle of tax season
Story by Ariana Baio and Fatima Hussein, The Independent, 3/5/25
The IRS is preparing to slash its workforce by up to 50 percent through layoffs and incentivized buyouts – a move that could upend the agency’s ability to collect taxes and issue refunds on time.
Already, more than 7,000 employees within the agency’s 90,000-person workforce have been laid off since President Donald Trump took office and his right-hand man, billionaire Elon Musk, began a crusade to cut the federal workforce drastically.
The remaining IRS staff could face major changes in their workload soon as the Trump administration prepares to offer buyouts, lay off some employees and allow for natural attrition – or the act of not replacing employees once they leave, two people familiar with the matter told the New York Times.
A reduction in force of tens of thousands of employees would render the IRS “dysfunctional,” said John Koskinen, a former IRS Commissioner.
It is unclear when the reduction in force would be implemented, but the White House has asked federal agencies to develop a report by March 13 related to reorganization plans. People of color make up 56 percent of the IRS workforce, and women represent 65 percent.
The IRS is currently in the throes of its busy season, with tax day, April 15, quickly approaching. That is the final day for more than 160 million Americans to file their taxes without an extension.
Typically, the IRS issues a taxpayer’s tax return within three weeks of filing. But should the agency choose to begin its reduction in force plan before the beginning of May, it could impact how quickly people receive those tax returns. The IRS processes more than 100 million tax refunds each year.
Representatives for the White House, the Treasury Department and the IRS did not respond to an Associated Press request for comment.
Musk’s Department of Government Efficiency team infiltrated the IRS in recent weeks with two of its team members, Gavin Kliger and Sam Corcos, working from the agency’s Washington D.C. office, people familiar with the matter told the Times.
Their attempts to gain access to sensitive datasets in the IRS have earned the ire of Democrats and some members of the public, as they are unelected and sometimes inexperienced individuals.
Two leaders in the IRS have stepped down since Trump took office and the current acting commissioner, Melanie Krause, placed the chief human capital officer on administrative leave this week, according to reports.