The IRS is set to lay off thousands of probationary workers in the midst of tax season, according to two sources familiar with the agency’s plans. These layoffs could take place as early as next week.
This move comes as part of the Trump administration’s broader efforts to reduce the size of the federal workforce, which includes directing agencies to lay off nearly all probationary employees who haven’t yet secured civil service protection.
The exact number of IRS workers affected remains unclear.
In a previous announcement, the administration revealed plans to offer buyouts to most federal employees through a “deferred resignation program” aimed at reducing the workforce quickly. The program had a deadline of February 6, with officials stating that employees who accept the buyout would still receive pay until September 30, without having to work.
However, IRS employees involved in the 2025 tax season were informed that they would not be allowed to accept buyout offers until after the tax filing deadline, as per a letter sent to IRS staff recently.
The number of workers impacted by the layoff plan is still unknown. Representatives from the U.S. Treasury and the IRS have not responded to requests for comment.
The 2025 tax season officially began on January 27, with the IRS expecting over 140 million tax returns to be filed by the April 15 deadline. The Biden administration had allocated $80 billion to the IRS through the Inflation Reduction Act, aimed at enhancing customer service, enforcement, and updating technology within the agency, including plans to hire tens of thousands of new employees.
However, Republicans have managed to reverse some of that funding, and billionaire Elon Musk, alongside his Department of Government Efficiency, has advocated for drastically reducing federal spending, even calling for the elimination of entire government agencies to restructure national priorities.
Elected officials are pushing back against the plans of the Department of Government Efficiency (DOGE). Attorneys general from 14 states filed a lawsuit on Thursday challenging the authority of the department to access sensitive government data and exercise what they describe as “virtually unchecked power.”
The lawsuit, filed in federal court in Washington, argues that the actions taken by Elon Musk while leading DOGE can only be performed by an official who has been nominated and confirmed by the Senate. The lawsuit references constitutional provisions that define the powers of Congress and the president.
