IRS Plans Major Cuts, Could Lose Half of Workforce

Washington, March 5, 2025 – The Internal Revenue Service (IRS) is drafting plans to cut up to 50% of its 90,000-person workforce through layoffs, attrition, and buyouts, according to sources familiar with the matter.

This move is part of the Trump administration’s broader effort to shrink the federal workforce via Elon Musk’s Department of Government Efficiency, which seeks to close agencies and streamline operations. Earlier this year, around 7,000 probationary IRS workers were let go, and nearly all federal employees are being offered buyouts as part of a “deferred resignation program” to reduce headcount.

However, experts warn that such drastic cuts would render the IRS “dysfunctional” and hinder its ability to collect taxes efficiently. Former IRS Commissioner John Koskinen emphasized that reducing resources would make the agency less effective.

In addition to staff cuts, the administration plans to lend IRS employees to the Department of Homeland Security for immigration enforcement. This has raised concerns, with former IRS Commissioners stating that these reductions could harm tax collection efforts and hurt efforts to target wealthy tax evaders.

The White House has yet to approve the IRS reorganization plan, with a report due from federal agencies by March 13.

Source: Associated Press