IRS Begins Downsizing Plan, Cutting 130 Jobs Just Days Before Tax Deadline

Just weeks after it was reported that the IRS was slashing its workforce, the agency put this plan into action.

On Friday, the Internal Revenue Service terminated staff members from the Office of Civil Rights and Compliance as part of a broader reduction in force. The Washington Post reported that roughly 130 employees were let go, with the remaining staff moved to the Office of Chief Counsel, according to an email reviewed by Bloomberg Tax.

This action follows a directive from the Department of Government Efficiency (DOGE), which has been advocating for mass layoffs since President Trump’s return to Washington. DOGE recommended the IRS reduce its workforce by 20 percent by May 15th, furthering the ongoing effort to downsize the federal government. With the tax filing deadline of April 15th looming, thousands of terminations have already taken place.

Despite concerns, a Treasury spokesperson told The Hill that the department is “considering a wide range of possible streamlining initiatives” but emphasized that “no plan has been approved to date.”

The impact of these cuts is being felt across various federal departments. The Department of Health and Human Services, for example, recently issued layoff notices, prompting fears of a potential “brain drain.”

As reported by an outplacement firm last month, the total number of federal workforce cuts has exceeded 275,000, amplifying the pressure on Washington’s economy.