Reports indicate the Internal Revenue Service (IRS) is preparing to reduce its workforce by approximately 7,000 probationary employees, beginning Thursday. These cuts will primarily affect employees in Washington, D.C., and across the nation who have been with the agency for less than a year and haven't yet attained full civil service protection, according to sources cited by the Associated Press and Reuters.
The positions targeted include various roles, from revenue agents and specialized auditors to IT specialists, spanning all 50 states, Puerto Rico, and Washington, D.C. While the IRS aims to retain several thousand probationary employees deemed essential for tax return processing, including taxpayer support and advocacy roles, the impact on tax collection services remains uncertain, especially considering the anticipated receipt of over 140 million returns this year.
These layoffs align with the Trump administration's ongoing initiative to streamline government operations and curb federal spending. The Department of Government Efficiency is spearheading this effort, focusing on reducing the federal workforce, particularly recent hires. This action follows President Trump's January directive mandating federal employees to return to on-site work by early February or face potential termination.
This workforce reduction partially reverses the Biden administration's Inflation Reduction Act, which allocated $80 billion to recruit 87,000 new IRS agents, as per a September 2023 House Oversight Committee report. The committee asserted that these funds were used to hire agents specifically targeting middle-class Americans. The Biden administration, however, contended that bolstering IRS staffing would enhance the government's ability to ensure high-income earners pay their due taxes.
The IRS has reported improvements in service performance and phone wait times over the past two tax seasons. IRS Commissioner Danny Werfel highlighted these advancements, emphasizing that they represent the initial phase of necessary improvements, with further investment in the nation's tax system being crucial.
