The IRS, the Internal Revenue Service, is laying off about 7,000 employees in Washington and across the US. According to an Associated Press report, the layoffs will affect probationary employees with about a year or less of service with the agency.
It will also largely include employees from compliance departments. The layoffs begin today, Thursday. Compliance work involves making sure taxpayers follow the tax code, file their returns and pay their taxes, among other duties.
According to the latest IRS data, the IRS has about 90,000 employees across the United States. Racial minorities make up 56 percent of the IRS workforce. Women make up 65 percent. The layoffs are part of the Donald Trump administration’s efforts to reduce the size of the government workforce in the US through the Department of Government Efficiency. Agencies have been ordered to lay off nearly all probationary employees who have not yet received civil service protections.
IRS employees could be hired out to the Department of Homeland Security
IRS employees covered for the 2025 tax season were told earlier this month that they would not be allowed to accept buyout offers from the Trump administration until mid-May, after the tax filing deadline. In addition to these planned layoffs, the Trump administration intends to rent out IRS employees to the Department of Homeland Security to help with immigration enforcement.
As America’s revenue collector, the IRS was tasked with targeting high-wealth tax evaders during the Biden administration to provide the US with an additional source of income. The US is in debt of $36 trillion. By the end of 2024, the IRS collected more than $1.3 billion in back taxes from wealthy tax evaders.
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