IRS to slash nearly 7K employees starting Thursday: reports

The Internal Revenue Service (IRS) is set to reduce its workforce by approximately 7,000 probationary employees nationwide, starting Thursday, according to multiple reports.

These layoffs will primarily affect workers who have been with the agency for a year or less and have not yet secured full civil service status, The Associated Press (AP) reported, citing a source familiar with the decision. Reuters also confirmed the planned cuts, noting that around 6,700 IRS employees—approximately 7% of the agency’s total workforce of 95,000—will be let go.

Sources told Reuters that the layoffs will impact a broad range of positions, including revenue agents, specialized auditors, and IT specialists across all 50 states, Puerto Rico, and Washington, D.C. However, some probationary employees deemed essential for tax processing and taxpayer assistance will be retained, according to Reuters’ source.

The AP report suggests that compliance staff will bear the brunt of the cuts. Compliance personnel are responsible for ensuring taxpayers meet their obligations, including filing returns and making timely payments ahead of the April 15 deadline.

As of now, the IRS has not officially confirmed the reported layoff plans. Fox News Digital reached out to both the IRS and the Department of Treasury for comments but has not yet received a response.

This workforce reduction aligns with the Trump administration’s broader initiative to enhance government efficiency and curb excessive federal spending. The Department of Government Efficiency has been tasked with streamlining operations, including eliminating nearly all recent hires.

The move follows President Donald Trump’s January 29 directive requiring federal employees to return to in-person work by early February or face termination. Additionally, IRS employees involved in the 2025 tax season were informed that they would not be eligible for the administration’s buyout program until mid-May, after the peak tax filing period, according to AP.

This workforce reduction partially counters the Biden administration’s 2022 Inflation Reduction Act, which allocated $80 billion to IRS expansion, including hiring 87,000 new agents, as noted in a September 2023 House Oversight Committee report.

Republicans have criticized this expansion, arguing that it disproportionately targeted middle-class Americans, while the Biden administration defended the funding as a necessary measure to ensure the wealthiest individuals pay their fair share of taxes.

Despite ongoing debates over IRS staffing levels, recent agency improvements have been noted. In a January statement, IRS Commissioner Danny Werfel highlighted enhanced taxpayer services and reduced phone wait times in the past two filing seasons.

"This has been a historic period of improvement for the IRS, and people will see additional tools and features to help them with filing their taxes this tax season," Werfel said. "These taxpayer-focused improvements are significant, but there is still more to do. Continued investment in the nation’s tax system will be essential."

This article was reported by journalist Jimmy.