The Internal Revenue Service (IRS) is preparing to reduce its workforce by up to 50%, potentially affecting 45,000 of its 90,000 employees. This initiative aligns with the Trump administration’s broader strategy to decrease the federal workforce through the Department of Government Efficiency (DOGE), led by Elon Musk.
The reduction strategy encompasses layoffs, attrition, and incentivized buyouts. Notably, approximately 7,000 probationary employees were laid off in February. Further cuts are anticipated, with IRS officials required to submit a workforce reduction plan by March 13.
Critics argue that such substantial cuts could impair the IRS’s ability to process tax returns and conduct audits effectively. John Koskinen, a former IRS commissioner, cautioned that reducing the workforce by half would render the agency “dysfunctional” according to AP News. Additionally, Michael Kaercher of NYU Law expressed concerns about potential delays in tax refunds and diminished capacity to address taxpayer inquiries reported Time Magazine.
The administration is also considering reallocating some IRS employees to the Department of Homeland Security to support immigration enforcement efforts. This potential reassignment raises further concerns about the IRS’s capacity to fulfill its primary tax-related responsibilities.
These planned reductions are part of a broader effort by the Trump administration to streamline federal operations and reduce government spending. However, experts warn that diminishing the IRS’s workforce could adversely affect tax collection efficiency, potentially exacerbating the financial challenges the administration aims to address.
As the IRS moves forward with these plans, taxpayers may experience longer wait times for refunds and limited access to customer service during the upcoming tax seasons. The full impact of these workforce reductions on the agency’s operations and taxpayer services remains to be seen.