Map Shows States With Most IRS Offices Expected to Close After DOGE Cuts
Story by Robert Thorpe, Newsweek, 3/7/25
In a sweeping move to reduce federal expenditures, the Department of Government Efficiency (DOGE) has identified numerous Internal Revenue Service (IRS) offices across the United States for potential lease terminations. This action has raised concerns about taxpayer services and the accessibility of local IRS assistance centers.
A spokesperson for the General Services Administration (GSA) told Newsweek Acting Administrator Stephen Ehikian is focused on “reducing our deferred maintenance liabilities, supporting the return to office of federal employees, and taking advantage of a stronger private/government partnership.”
Why It Matters
The proposed termination of over 100 IRS office leases, including taxpayer assistance centers, comes amid the current tax filing season, potentially disrupting services for millions of Americans. The IRS anticipates processing over 140 million tax returns by the April 15 deadline, making these potential closures particularly impactful.
Beyond immediate service disruptions, these lease terminations may hinder taxpayers’ ability to resolve issues such as checking their refund status or addressing tax disputes in person. This shift could disproportionately affect individuals without reliable internet access or those uncomfortable with digital platforms.
What To Know
Recent directives from DOGE have instructed the GSA to terminate leases on approximately 7,500 federal offices nationwide, aiming to reduce government expenditures and office space.
California currently has the most IRS offices slated for closure, with seven locations affected. Cities such as San Mateo, San Marcos, Thousand Oaks, Stockton, El Centro, Visalia and Modesto are all included in the planned cutbacks. Massachusetts and Kentucky follow closely behind, each with four offices listed for closure.
ccording to the DOGE website, here is a list of the states with the most proposed office closures:
California (7 closures)
- San Mateo, CA
- San Marcos, CA
- Thousand Oaks, CA
- Stockton, CA
- El Centro, CA
- Visalia, CA
- Modesto, CA
Massachusetts (4 closures)
- Lowell, MA
- Worcester, MA
- Southborough, MA
- Springfield, MA
Kentucky (4 closures)
- Paducah, KY
- Owensboro, KY
- Bowling Green, KY
- Hopkinsville, KY
Arizona (3 closures)
- Phoenix, AZ
- Mesa, AZ
- Glendale, AZ
Tennessee (3 closures)
- Knoxville, TN
- Franklin, TN
- Chattanooga, TN
Alabama (3 closures)
- Montgomery, AL
- Birmingham, AL (2 closures)
Oregon (3 closures)
- Salem, OR
- Bend, OR
- Medford, OR
The DOGE website categorizes the Lowell office’s lease termination as a “True Termination – Move to Federal Space,” indicating that the IRS may relocate services to another federal building rather than shutting down entirely. However, the rest of the offices listed are marked as “Termination via Mass Mod,” which is a broad administrative action where multiple lease agreements are modified or terminated simultaneously.
Critics argue that the large-scale termination of IRS office leases could create significant barriers for taxpayers who need in-person assistance, particularly during peak tax season. Representatives Richard E. Neal, Terri Sewell and Mike Thompson released a statement condemning the proposed closures, calling it “an absolute nightmare for taxpayers.”
Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting, told Newsweek the full impact of these closures remains unclear but “indications are that there would be no closures before the end of the current tax filing season.”
He also notes the General Services Administration (GSA) has previously reversed federal office sales and has stated it will review these closures on a case-by-case basis, meaning fewer offices may ultimately close. He goes to state while most affected locations appear to be Taxpayer Assistance Centers, the GSA has said it will not prioritize shutting down public-facing facilities.
What People Are Saying
A spokesperson for the GSA told Newsweek: “Acting Administrator Ehikian’s vision for GSA includes reducing our deferred maintenance liabilities, supporting the return to office of federal employees, and taking advantage of a stronger private/government partnership in managing the workforce of the future.
GSA is reviewing all options to optimize our footprint and building utilization. A component of our space consolidation plan will be the termination of many soft term leases. To the extent these terminations affect public facing facilities and/or existing tenants, we are working with our agency partners to secure suitable alternative space. In many cases this will allow us to increase space utilization and obtain improved terms.”
Representatives Richard E. Neal, Terri Sewell and Mike Thompson stated in a press release: “Ask any congressional district office and you’ll hear about the challenges constituents face during filing season, which is why Democrats ushered in a once-in-a-generation investment in modernizing the IRS and delivering the customer service the people deserve. This administration is hellbent on destroying our progress.
It wasn’t enough for them to fire nearly 7,000 IRS employees in the middle of filing season, but now, they are skirting federal mandatory notice procedures and reportedly shuttering over 100 offices that offer taxpayer assistance—an absolute nightmare for taxpayers.”
Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “When most Americans hear of cuts being made to the IRS workforce, they are often jubilant. That’s not because anyone is celebrating another person losing a job, but rather out of the belief fewer IRS agents will equate with fewer audits and other negative consequences taxpayers could encounter.
However, the sad reality is if those same taxpayers run into problems with filing, receiving a refund, or having a mistake that needs correction, the processing time for those changes could increase substantially. There are many horror stories being posted on social media and shared on online forums of individuals who have not just waited weeks or months but years for a simple correction to a past return that was filed, and that really speaks to the limited workforce the administration already has.
If you rarely have issues with your filing and your refund is set to direct deposit, you more than likely won’t see many ramifications from a workforce reduction. However, for those paper filing or having issues with their return, the situation unfortunately could be worse.”
Kevin Thompson, founder and CEO of 9i Capital Group, told Newsweek: “The closures in the middle of tax season will be nothing short of disastrous. Why anyone would think it’s a good idea to shut down IRS offices during their busiest time of year—while also cutting probationary employees and staff—is beyond any level of business sense.
For lower-income communities that rely on these brick-and-mortar services and don’t have access to traditional electronic filing, this will force them to turn to private services, which may not be cost-effective for them. The likely result? Fewer people filing their taxes this year, either due to confusion or lack of access.
And here’s the real kicker—if fewer people file, the government essentially gets to keep more of the money that was supposed to be refunded. The sad reality is that if you don’t file your return, you leave yourself open to an indefinite audit. Meanwhile, if you’re owed money, you only have a three-year statute of limitations to claim it.”
Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting, told Newsweek: “It is unclear what the ultimate result of this will be. The statement came from the General Services Administration, which has already backed off on some of its announced proposed sales of federal office buildings. Most of the proposed sites appears to be leases for Taxpayer Assistance Centers. However, the GSA also says that they will not focus on facilities that are “public facing”, which taxpayer assistance centers appear to be. The GSA also says that they will review these closings on a case-by-case basis, so it is far from clear how many will actually close.
The IRS has around 360 taxpayer assistance centers and had been expanding the number over the last couple of years to improve customer service with the additional funds given to the IRS under the Inflation Reduction Act. Indications are that there would be no closures before the end of the current tax filing season.
Taxpayer assistance centers are designed to assist lower-income taxpayers in filing their tax returns, so the impact of closing those centers would be to reduce those services to lower-income taxpayers. I am not sure if all of those leases are long-term leases or if some would be short-term leases just to cover each the tax filing season.”
What Happens Next
As DOGE continues its cost-cutting measures, further IRS office closures and workforce reductions may occur. Taxpayers are encouraged to utilize online resources and contact the IRS through official channels for assistance. Lawmakers are expected to push for greater transparency and demand detailed plans from the administration to mitigate the impact on taxpayer services.