Will the IRS Lose Half Its Workforce?

The IRS may soon lose up to half of its workforce as the Trump administration pursues aggressive cuts amid the ongoing tax season.

Quick Takes

Plans are reportedly being made to cut up to 45,000 workers from the IRS through layoffs, attrition, and buyouts.
The possible layoffs are part of a larger effort by Elon Musk’s Department of Government Efficiency to reduce the federal workforce.
A Treasury spokesperson said no plan has been approved yet, but changes intend to ensure “a smooth and successful filing season.”
Some former IRS commissioners are concerned significant cuts will reduce the efficiency and effectiveness of the agency.
7,000 probationary IRS employees were already laid off in February with more cuts expected.
Some IRS employees may be reassigned to support immigration enforcement at DHS, per reports.

Massive IRS Staff Reduction Plan Reported

The Internal Revenue Service is drafting plans to reduce its workforce by as much as 50%, according to AP sources. The plan would affect nearly half of the agency’s 90,000 employees through a combination of layoffs, attrition, and buyout offers. This workforce reduction is part of the Trump administration’s broader effort to reduce the federal workforce and is being driven by Elon Musk’s Department of Government Efficiency (DOGE), which was established to identify and eliminate what the administration sees as wasteful government spending and bureaucracy.

Approximately 7,000 probationary IRS employees were already laid off in February. According to reports, federal agencies are required to submit their reduction plans by March 13, though the specifics of implementation timelines remain unclear.

Tax Season Impact and Implementation Timeline

The timing of this development is notable, as it coincides with the busy 2025 tax season. Sources indicate that IRS employees currently involved in processing tax returns cannot accept buyout offers until after the mid-May tax filing deadline, potentially creating a staggered reduction approach. However, reports suggest approximately 6,000 additional employees may still face layoffs during this period. It is largely unknown on what timetable the agency’s reduction plan would be implemented if approved.

A Treasury spokesperson spoke with Fox News on Wednesday, March 5, amid the recent reports, and said, “In line with the Trump administration’s focus on efficiency and deficit reduction, the Treasury Department is considering a wide range of possible streamlining initiatives.” The spokesperson emphasized that no plan has been officially approved yet, but added that any “changes are aimed at improving taxpayer customer service and ensuring a smooth and successful filing season.”

Reassignment to Border Enforcement and Critics’ Concerns

Reports indicate the Trump administration is also planning to reassign some IRS workers to the Department of Homeland Security to assist with immigration enforcement efforts. A letter from DHS Secretary Kristi Noem reportedly requested IRS workers to support border security initiatives, indicating a shift in resources from tax collection to immigration enforcement. This move aligns with the administration’s focus on border security but raises questions about the impact on the IRS’s core functions.

Some critics have expressed concerns about the potential impact of workforce cuts on the IRS’s effectiveness. Former IRS Commissioner John Koshinen expressed his belief that it would leave the agency “dysfunctional.” Koshinen and six other former IRS Commissioners also wrote in the New York Times recently, arguing against significant reductions for the IRS.