IRS To Fire 7,000 Employees Across Washington, Says Report

IRS Layoffs: This move is part of a broader initiative by the Trump administration to reduce the size of the federal workforce through the Department of Government Efficiency

It remains unclear how the layoffs might impact tax collection services this year, states the report

Source : Mondo

The Internal Revenue Service (IRS) is set to lay off approximately 7,000 workers across Washington and other regions starting Thursday, according to a report from The Associated Press citing sources familiar with the situation. The layoffs primarily affect probationary employees with less than one year of service, particularly those working in compliance departments. Compliance roles involve ensuring taxpayers follow the tax code, file their returns, and pay taxes, among other responsibilities.

This move is part of a broader initiative by the Trump administration to reduce the size of the federal workforce through the Department of Government Efficiency. Agencies have been instructed to cut most probationary employees who have not yet earned civil service protection. The layoffs come despite IRS employees involved in the 2025 tax season being informed earlier this month that they would not be eligible for buyout offers until mid-May, after the taxpayer filing deadline, states the report.

It remains unclear how the layoffs might impact tax collection services this year. As the US tax collector, the IRS had been tasked under the Biden administration with targeting high-income tax evaders to boost national revenue. By the end of 2024, the IRS had recouped over $1.3 billion in back taxes from wealthy individuals avoiding taxes, reveals the report.

According to the report, the IRS employs approximately 90,000 people across the United States, as per the most recent data. Racial minorities account for 56 per cent of the workforce, while women make up 65 per cent.

Along with the planned layoffs, the Trump administration also plans to reassign IRS employees to the Department of Homeland Security (DHS) to support immigration enforcement. In a letter earlier this month, DHS Secretary Kristi Noem requested Treasury Secretary Scott Bessent to lend IRS personnel to assist with the ongoing immigration crackdown efforts, noted the report.