Trump Orders Mass IRS Layoffs in Middle of Tax Filing Season/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The IRS is preparing to lay off thousands of probationary workers in the middle of the 2025 tax season, with cuts expected as early as next week, according to sources familiar with the agency’s plans. The move is part of the Trump administration’s broader effort to shrink the federal workforce, led by Elon Musk’s Department of Government Efficiency (DOGE). The layoffs come despite a record 140 million tax returns expected by April 15, raising concerns about delays and disruptions. Meanwhile, 14 states have filed a lawsuit challenging the administration’s authority over government agencies.
IRS Workforce Cuts Set to Disrupt Tax Season – Quick Look
- Mass Layoffs Coming: Thousands of probationary IRS workers to be laid off mid-tax season.
- Administration Directive: Trump ordered government-wide cuts of non-protected federal employees.
- Delayed Buyouts: IRS staff couldn’t accept buyouts until after tax season, adding confusion.
- Tax Season Impact: IRS expects 140 million tax returns, but cuts may slow processing.
- DOGE’s Role: Elon Musk’s Department of Government Efficiency is driving the reductions.
- Legal Challenges: 14 states sued the administration, questioning DOGE’s authority.
- Republican Spending Cuts: Congress clawed back IRS funding intended for hiring & modernization.
Deep Look: IRS to Cut Thousands of Workers in Middle of Tax Filing Season
The IRS is preparing to lay off thousands of probationary workers at the height of the 2025 tax season, with cuts expected to take effect as soon as next week, according to two sources familiar with the agency’s plans.
The layoffs are part of the Trump administration’s broader initiative to downsize the federal workforce, an effort spearheaded by Elon Musk’s Department of Government Efficiency (DOGE). However, the timing has raised alarm among tax professionals and elected officials, given that the IRS is currently processing millions of tax returns ahead of the April 15 deadline.
Unclear Impact on IRS Workforce
It remains unclear how many IRS employees will be affected, as neither the U.S. Treasury nor the IRS responded to requests for comment.
The layoffs follow the administration’s “deferred resignation program,” a voluntary buyout offer for federal employees to resign while continuing to receive paychecks until September 30. However, IRS workers were told they couldn’t accept buyouts until after the tax filing deadline, leaving many uncertain about their job security.
The 2025 tax season officially began on January 27, with the IRS expecting over 140 million returns by April 15. The layoffs have sparked concerns over potential processing delays, especially after the IRS faced years of staffing shortages due to budget cuts and outdated technology.
IRS Funding Battle & GOP Budget Cuts
- Under the Biden administration, the IRS received an $80 billion funding boost through the Inflation Reduction Act, aimed at:
- Hiring tens of thousands of new employees for customer service & enforcement
- Modernizing outdated tax processing technology
- Enhancing fraud detection and tax collection capabilities
However, Republican lawmakers successfully rolled back funding, slashing billions from the IRS budget, citing concerns over government overreach and spending.
Elon Musk and his DOGE agency have been vocal about their goal to “delete entire agencies” and radically shrink government operations. This latest wave of layoffs aligns with their push to cut spending and restructure federal priorities.
Legal Challenges to DOGE’s Authority
- On Thursday, attorneys general from 14 states filed a lawsuit in federal court in Washington, D.C., challenging the administration’s use of DOGE to enact mass government layoffs.
- The lawsuit argues that Elon Musk’s role in DOGE violates the U.S. Constitution, stating that only Senate-confirmed officials can make such sweeping changes to government operations.
The lawsuit raises serious constitutional questions, citing the separation of powers between Congress and the president.
Tax Season Disruptions Ahead?
- Potential issues include:
- Longer processing times for tax refunds
- Delays in IRS customer service responses
- Slower fraud detection and tax enforcement
Critics argue that gutting the IRS workforce in the middle of tax season will hurt American taxpayers the most, while supporters claim it’s a necessary step toward reducing government spending.
With legal battles heating up and federal job cuts accelerating, the impact of Trump’s workforce reductions on the tax filing process remains to be seen.
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