More Trump Cuts: IRS Set to Lay Off Thousands as Tax Season Heats Up

The U.S. Internal Revenue Service (IRS) is poised to lay off thousands of workers, a move that could strain resources at the critical tax-collecting agency during peak filing season, according to two individuals familiar with the matter.

Officials from the Office of Personnel Management, responsible for overseeing federal hiring, instructed agencies to terminate probationary employees — those who are newer to their roles and lack full job protections.

It remains unclear how many employees will be affected, though the IRS, which expanded under President Joe Biden to about 100,000 employees, includes approximately 16,000 probationary workers. Biden’s administration aimed to enhance the agency’s operations, including boosting its capacity to audit corporations and affluent taxpayers.

The cuts will primarily target probationary workers who either did not opt for a now-closed buyout program or have not been deemed essential for the ongoing tax season, which is nearing its peak with the April 15 filing deadline fast approaching. The IRS will continue to handle returns and process refunds for months following the deadline.

First reported by the New York Times, the layoffs are part of a broader initiative by President Donald Trump and Elon Musk to reform the federal government, which they criticize as inefficient and prone to waste and fraud.

One source expressed concerns that the layoffs could hinder the agency’s operations, stating, “They are trying to reduce numbers across the board with no analysis to the impact it will have on operations.”