WASHINGTON (AP) — Reports indicate that the Internal Revenue Service (IRS) is set to lay off a significant number of probationary workers during the ongoing tax season. According to sources familiar with the agency’s plans, these cuts could take effect as early as next week. This move comes amidst the Trump administration’s aggressive efforts to reduce the size of the federal workforce, with a directive to terminate almost all probationary employees who have not yet attained civil service protection.
The exact number of IRS employees who will be impacted by these layoffs remains uncertain. Previously, the administration unveiled a plan to offer buyouts to federal employees through a “deferred resignation program” aimed at swiftly downsizing the government workforce. The deadline for this program was February 6, and those who accept the buyout offer can cease working while still receiving a paycheck until September 30.
Despite this initiative, IRS employees involved in the 2025 tax season have been informed that they are not eligible to accept a buyout offer from the Trump administration until after the taxpayer filing deadline. This communication was relayed through a recent letter sent to IRS employees. Efforts to obtain comments from representatives of the U.S. Treasury and IRS by the Associated Press have been unsuccessful.
The 2025 tax season officially began on January 27, with the IRS anticipating over 140 million tax returns to be filed by the April 15 deadline. In a bid to enhance IRS operations, the Biden administration allocated $80 billion in funding through the Democrats’ Inflation Reduction Act. This funding is intended to support the hiring of tens of thousands of new employees to bolster customer service and enforcement efforts, as well as implement new technology to modernize the tax collection agency.
Despite these investments, Republicans have managed to roll back some of this funding. Business magnate Elon Musk and his Department of Government Efficiency have advocated for substantial cuts in government spending, even proposing to eliminate entire government agencies to realign priorities.
In response to Musk’s initiatives, elected officials are pushing back. A lawsuit filed by attorneys general from 14 states challenges DOGE’s authority to access sensitive government data and exercise what they describe as “virtually unchecked power.” The lawsuit, filed in federal court in Washington, asserts that actions taken by Musk at the helm of DOGE should only be carried out by a nominated and Senate-confirmed official, citing constitutional provisions that delineate the powers of Congress and the president.
