
In a massive move, the IRS plans an unprecedented layoff, cutting up to 25% of its workforce, impacting around 20,000 employees.
See the tweet below!
This reduction begins at the IRS’s Office of Civil Rights and Compliance, effectively shutting it down.
While the Treasury Department claims this move seeks efficiency through technological advances, concerns about implications during tax season surge among citizens.
The IRS started a new round of layoffs on Friday, April 4, 2025, targeting the Office of Civil Rights and Compliance first.
Remaining staff are being shifted to the Office of Chief Counsel. The layoffs, initiated in phases, will offer early retirement incentives to employees.
More than 4,000 IRS employees had already accepted deferred resignation offers earlier this year.
A Treasury spokesperson stated, “Staffing reductions…will be part of — and driven by — process improvements and technological innovations that will allow the IRS to collect revenue and serve taxpayers more effectively.”
Some argue this roll back is vital for improving efficiency and quality.
The layoffs also impacted approximately 50 IT security staffers who were placed on administrative leave, stirring anxiety about possible delays during tax season.
One former IRS commissioner highlighted the risk by saying, “The bottom line: Forever, it has been an absolute rule of thumb that you keep things stable during filing season. Because it’s delicate.”
The Trump administration initiated this process, aiming to reduce the federal bureaucracy’s size, resulting in agency closures, probationary employee layoffs, and deferred resignation offers.
However, over 6,600 probationary employees initially fired were later reinstated by court orders, creating uncertainty about their inclusion in future layoffs.
Concerns also rise as several senior IRS leaders resigned or faced demotions since January.
The White House refrained from commenting on the layoffs.
These developments raise questions about the prioritization of efficiency over maintaining workforce stability during crucial tax periods, showcasing the complexities in balancing administrative policies with practical implications.
“Rolling back Biden-era hiring and consolidating support functions are intended to more efficiently serve the public,” a Treasury spokesperson remarked confidently.
This statement echoes an underlying belief in the administration that these changes will benefit taxpayers despite the immediate disruptions.
The IRS had begun reducing its workforce as early as February, notifying approximately 7,000 probationary employees about potential job loss.
However, those involved in the 2025 tax season were restricted from accepting buyouts until after April 15, compounding the uncertainty among employees regarding their future.
As the layoffs unfold, American taxpayers will closely scrutinize their impact on IRS operations and efficiency during tax season.
This proves to be a testing period for both the IRS and the Treasury Department’s long-term strategy, seeking to restore public confidence while maintaining service integrity amid controversial administrative reforms.
BREAKING:
IRS to Layoff 25% of Workforce 😱https://t.co/rzw8crWRsx
— FlowerPower (@Flower_Power_67) April 7, 2025