The Internal Revenue Service (IRS) is set to lay off approximately 7,000 probationary employees starting Thursday, according to an Associated Press (AP) source. The move comes as part of the Trump administration’s initiative to downsize the federal workforce, particularly affecting compliance workers responsible for enforcing tax laws and collecting revenue.
These layoffs, which affect IRS locations nationwide, will affect employees who have worked for the agency for less than a year. The move is part of the Department of Government Efficiency’s larger initiative to cut non-permanent federal workers before they are granted civil service protection. How this may impact ongoing tax collecting efforts during the 2025 filing season is still unknown.
Compliance Teams Hit Hardest by Job Cuts
The layoffs primarily target probationary employees in compliance departments, according to the AP source. These teams are responsible for ensuring taxpayers follow federal tax laws, file returns accurately, and meet payment obligations. With 90,000 total employees at the IRS, compliance workers play a crucial role in maintaining federal revenue streams.
Under the Biden administration, the IRS focused on closing tax loopholes for high-net-worth individuals, collecting over $1.3 billion in back taxes from wealthy tax evaders by the end of 2024. The removal of probationary staff could impact these efforts, particularly as the U.S. faces a $36 trillion national debt.
This decision also follows the administration’s refusal to offer early buyouts to IRS employees involved in the 2025 tax season. Workers were reportedly informed that any voluntary separation offers would not be available until mid-May, after the federal tax filing deadline.
IRS Staff to Be Reassigned to Immigration Enforcement
Beyond the layoffs, the Trump administration has also proposed reassigning IRS personnel to assist with immigration enforcement efforts. In a letter sent earlier this month, Department of Homeland Security (DHS) Secretary Kristi Noem requested that Treasury Secretary Scott Bessent transfer IRS employees to DHS to support border control operations.
The extent of this transfer remains unclear, as the IRS and U.S. Treasury declined to comment on the request, according to AP. However, the move signals a shift in federal resource allocation, with tax enforcement taking a backseat to immigration policy priorities.
With 56% of the IRS workforce comprised of racial minorities and 65% being women, the layoffs may also disproportionately affect these groups. As tax season continues, the impact of reduced compliance staffing remains to be seen.
