Thousands of IRS Employees Facing Layoffs Amidst Tax Season

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A sign for the Internal Revenue Service (IRS) is seen on its building in Washington, D.C., on Feb. 13, 2025.

WASHINGTON — Approximately 7,000 IRS employees nationwide face job cuts starting Thursday, according to a source familiar with the plans who spoke to the Associated Press.

The layoffs primarily impact probationary employees with less than a year of service, concentrated within compliance departments. This source, who requested anonymity due to the sensitive nature of the information, confirmed that compliance work involves ensuring taxpayer adherence to tax laws, including filing and payment responsibilities.

These job losses are part of the Trump administration’s broader effort to reduce the federal workforce, directed by the Department of Government Efficiency. This directive mandates the dismissal of nearly all probationary employees lacking civil service protection, despite assurances given earlier this month to IRS staff involved in the 2025 tax season that buyout offers would not be available until mid-May, after the tax filing deadline.

The potential impact of these layoffs on tax collection services remains unclear. During the Biden administration, the IRS focused on pursuing high-net-worth tax evaders to boost U.S. revenue, given the nation’s $36 trillion debt. By the close of 2024, the IRS had recouped over $1.3 billion in back taxes from wealthy tax dodgers.

The IRS employs roughly 90,000 people nationwide, with racial minorities and women making up 65% of its workforce, according to the most recent IRS data.

Beyond layoffs, the Trump administration plans to deploy IRS personnel to assist the Department of Homeland Security with immigration enforcement. In an early February letter, DHS Secretary Kristi Noem requested that Treasury Secretary Scott Bessent provide IRS employees to support ongoing immigration enforcement actions.

The AP’s requests for comment from the IRS and the U.S. Treasury went unanswered.