IRS to Cut Thousands of Jobs Amid Tax Season Shakeup

Washington, D.C., (February 15, 2025); The U.S. Internal Revenue Service (IRS) is preparing to lay off thousands of employees in the coming days, a move that could strain the tax agency’s operations during the peak of the tax-filing season, according to sources familiar with the matter.

Officials from the Office of Personnel Management have directed all federal agencies to terminate probationary employees—those who are relatively new to their positions and lack full job protections.

While the exact number of layoffs at the IRS remains uncertain, the agency had expanded under former President Joe Biden’s administration to around 100,000 employees, including approximately 16,000 probationary workers. The cuts will affect all probationary employees who did not opt for a voluntary buyout or were not deemed essential for managing the ongoing tax season, which is in full swing ahead of the April 15 filing deadline.

The IRS, which remains occupied well beyond the deadline processing returns and issuing refunds, has not yet commented on the layoffs.

The job cuts are part of a larger federal government restructuring effort led by President Donald Trump and billionaire entrepreneur Elon Musk, aimed at reducing what they see as bureaucratic inefficiencies, waste, and fraud.

However, some insiders have raised concerns that the layoffs could be carried out without considering their impact on the agency’s functioning.

“They are trying to reduce numbers across the board with no analysis of how it will affect operations,” one source said.

Source: Reuters