The tax agency is set to lay off 6,700 probationary employees as part of an executive order issued under former President Donald Trump. The move, which affects more than a third of the agency’s temporary workforce, comes just weeks before the April 15 tax filing deadline, raising concerns about its impact on tax processing.
The layoffs are part of a broader effort to cut federal spending and streamline government agencies, according to Reuters. While the IRS routinely hires seasonal staff to handle tax returns, the order prevents the agency from bringing in new employees, potentially straining its ability to process millions of filings.
IRS Workforce Reduction Set to Impact Tax Season Efficiency
According to an internal memo reviewed by The New York Times, Internal Revenue Service (IRS) managers were instructed to terminate probationary employees who were “not deemed critical” for tax processing. These employees, who have worked for the agency for less than a year, account for over a third of all probationary staff at the IRS.
The decision follows an executive order signed on Trump’s first day in office, which initially imposed a 90-day hiring freeze across federal agencies. However, the IRS was placed under an indefinite freeze, with hiring restrictions set to continue until the administration determined it was “in the national interest” to lift them.
While the IRS has faced workforce challenges in past years, this round of layoffs is notable for occurring at the peak of tax season, when the agency typically increases staff to handle high volumes of returns. The IRS has not publicly commented on how it plans to manage workloads with fewer employees available.
Broader Government Restructuring Raises Concerns Among Officials
The layoffs at the IRS are part of a wider government restructuring led by Elon Musk’s Department of Government Efficiency, according to The Associated Press. The initiative aims to reduce federal employment costs, with reports suggesting that hundreds of thousands of probationary employees across multiple agencies could be affected.
Adding to the strain, The New York Times reports that some IRS agents have been reassigned to assist with mass deportation efforts under the Department of Homeland Security (DHS). This shift in personnel has raised questions about whether the IRS can effectively carry out its primary function of tax collection and enforcement during the filing season.
Former IRS officials and Democratic lawmakers have warned that the workforce reduction could cause delays in processing returns and disrupt the distribution of refunds.
