IRS cutting its workforce by 25%, eliminating agency's civil rights office

The Internal Revenue Service (IRS) will reduce its workforce by at least 25% starting this Friday, with layoffs set to occur as part of the Trump administration's ongoing efforts to downsize the federal government.

Along with the layoffs, the IRS announced that it is dismantling its Office of Civil Rights and Compliance, which handles issues related to taxpayer discrimination, audits, and investigations. The employees remaining in this division will be reassigned to other departments.

In a statement to Fox News Digital, White House spokesperson Liz Huston said, “Unlike the previous administration’s widely criticized plan to hire thousands of additional IRS agents, President Trump is focused on cutting tax dollars, eliminating unnecessary offices, and boosting the agency’s efficiency.”

According to the IRS letter, this move is designed to improve the efficiency and effectiveness of the agency in line with the Workforce Optimization Initiative outlined in a recent Executive Order. The order directs the Department of Government Efficiency to eliminate wasteful spending.

The IRS also revealed that it has been authorized to offer Voluntary Early Retirement Authority (VERA) and Voluntary Separation Incentive Payment (VSIP) options. More details about these programs will be provided to employees in the future.

So far this year, around 5% of the office's staff have left through the Deferred Resignation Program and attrition. The agency now plans to reduce an additional 75% of the office’s workforce through a Reduction in Force (RIF).

A spokesperson for the Treasury Department told Fox News Digital that these cuts are part of efforts to enhance the IRS’s processes and leverage technology to better serve taxpayers and collect revenue.

The spokesperson emphasized that the reduction of "wasteful Biden-era hiring surges" and the consolidation of key support functions are crucial steps in improving both the efficiency and the quality of service.

The layoffs were anticipated after the agency revealed in February that it planned to cut nearly 7,000 probationary workers in Washington, D.C. However, these employees were reinstated following a court order.

The IRS currently employs around 90,000 people nationwide, based on the latest data from the agency.

This article was reported by journalist Angelia.