The IRS will lay off 7,000 probationary workers nationwide starting Thursday as part of the Trump administration’s federal workforce reduction plan. The cuts primarily affect compliance departments, raising concerns about tax collection efficiency. Some laid-off workers may be reassigned to immigration enforcement under DHS.
IRS Layoffs – Quick Looks:
- 7,000 IRS employees to be laid off starting Thursday; most have less than a year of service.
- Layoffs target compliance staff responsible for ensuring tax law adherence.
- Part of Trump’s push to reduce federal workforce via the Department of Government Efficiency.
- Uncertainty looms over tax collection services amid the ongoing 2025 tax season.
- IRS collected $1.3 billion in back taxes from wealthy Americans in 2024.
- 56% of IRS workforce are minorities; 65% are women.
- DHS plans to borrow IRS workers to support immigration crackdowns.
Deep Look:
IRS to Lay Off 7,000 Workers as Trump Administration Pushes Federal Workforce Cuts
WASHINGTON, D.C. – The Internal Revenue Service (IRS) will begin laying off approximately 7,000 probationary employees on Thursday, marking a significant step in the Trump administration’s initiative to reduce the federal workforce.
The layoffs, confirmed by a source familiar with the plans, primarily target employees with less than a year of service, particularly in the compliance divisions responsible for enforcing tax laws and collecting unpaid taxes.
“Compliance workers play a vital role in ensuring taxpayers file and pay on time,” the source noted. “Losing this many could have ripple effects on revenue collection.”
Why the Layoffs Are Happening:
The cuts are part of the administration’s broader strategy through the Department of Government Efficiency (DOGE) to trim federal employment by eliminating most probationary workers lacking civil service protection.
Despite prior assurances that IRS employees wouldn’t be offered buyouts until after the April tax filing deadline, the layoffs are proceeding earlier than expected.
“We’re making tough decisions to ensure efficiency,” a senior administration official said. “Streamlining government is key to delivering value to taxpayers.”
Potential Impact on Tax Services:
- The IRS is in the midst of processing millions of tax returns for the 2025 season.
- With fewer compliance officers, there are concerns about the agency’s ability to enforce tax laws and collect revenue effectively.
- Under the Biden administration, the IRS collected $1.3 billion in back taxes from high-income earners by the end of 2024—a trend that may now stall.
Who Is Affected?
- According to IRS data:
- 56% of employees are racial minorities
- 65% of workers are women
The layoffs disproportionately affect recent hires—many of whom joined during the IRS’s pandemic-era hiring surge to improve taxpayer services.
IRS Workers Reassigned to DHS:
In a surprising development, some laid-off IRS employees may be reassigned to the Department of Homeland Security (DHS) to support immigration enforcement operations.
DHS Secretary Kristi Noem requested Treasury cooperation earlier this month to borrow IRS personnel for border security efforts.
Critics argue this shift could further strain the IRS’s ability to handle its core mission during tax season.
Political and Economic Context:
- The U.S. national debt has surpassed $36 trillion.
- Trump’s administration emphasizes cutting government costs while enhancing border security.
- Opponents worry the layoffs undermine efforts to collect revenue and crack down on wealthy tax evaders.
What’s Next?
- Layoffs begin Thursday, with affected workers receiving notifications.
- Taxpayers may experience delays in audits, compliance checks, and refund processing.
- DHS expected to announce details on reassigned IRS staff roles in immigration operations soon.
Representatives from the IRS and U.S. Treasury declined to comment on how the cuts might affect tax services or how many workers will be shifted to DHS.
