The Internal Revenue Service (IRS) is planning significant workforce reductions as part of broader reorganization efforts. According to sources familiar with the matter, the agency may cut as much as half of its 90,000 employees. These cuts would result from a mix of layoffs, attrition, and voluntary buyouts. The sources spoke on the condition of anonymity, as they were not authorized to disclose the details.
These drastic measures are tied to a larger goal under the Trump administration to shrink the federal workforce. One part of this plan includes the creation of a “Department of Government Efficiency.” This initiative aims to close various agencies and reduce staff, including probationary employees who have yet to secure civil service protection. A key element is also offering buyouts to federal workers. The deferred resignation program allows employees to leave early in exchange for financial incentives.
Many experts are concerned about the impact of these cuts. Former IRS Commissioner John Koskinen warned that reducing the IRS workforce by tens of thousands would likely render the agency ineffective. Such drastic measures could undermine the IRS’s ability to manage the nation’s tax system efficiently. Currently, the IRS employs around 90,000 people across the country, with a significant portion representing women and people of color.
In February, the IRS already laid off approximately 7,000 probationary employees. These workers had been with the agency for one year or less. Additionally, the Trump administration extended buyout offers to IRS workers. However, those involved in the 2025 tax season were informed they could not accept the offers until mid-May, after the filing deadline.
Furthermore, the Trump administration intends to reassign IRS workers to assist the Department of Homeland Security (DHS) with immigration enforcement. DHS Secretary Kristi Noem recently requested these resources to help with ongoing efforts. However, this move has raised questions about the IRS’s ability to function effectively in its primary role.
As the White House pushes federal agencies to submit reduction plans by mid-March, the fate of the IRS’s proposed reorganization remains uncertain. It is unclear whether the White House will approve these plans or how long the process will take.
In conclusion, reducing the IRS workforce could have severe consequences for government efficiency. The effectiveness of tax collection and immigration enforcement may both suffer as a result. Policymakers must carefully consider the long-term effects of these decisions.
