IRS Anticipates Thousands of Layoffs Beginning Thursday
The job cuts influenced by DOGE are occurring during the tax filing season, raising concerns among some tax industry professionals about potential disruptions.
TroibNews 
The IRS plans to begin the layoff of 6,000 employees starting Thursday as part of broader federal job cuts. This decision arrives during the busy tax-filing season, prompting managers within the agency to focus on reductions affecting newer staff members—those in their roles for less than one year, or in some instances, two years, based on their position.
The upcoming cuts are anticipated to significantly impact enforcement personnel, who comprise a large portion of the agency's recent hires, potentially affecting tax collection efforts. The agency is also cautious about reducing taxpayer service staff as millions of Americans have begun filing their taxes, a process that will continue until April 15.
Details on whether additional layoffs will follow remain unclear, according to a source familiar with the agency's plans.
In a video message directed at employees at the Kansas City facility, a union representative announced an unspecified number of layoffs in that location. Shannon Ellis indicated that “we received notification today that employees in SB/SE who are on probation are scheduled for termination,” referring to the agency’s Small Business/Self Employed Division.
Further in the message, Ellis stated: “Our probationary employees will be removed as of tomorrow — we don’t know what time, we don’t know how it's going to happen, we don’t even know if it includes all of our probationary employees."
Ellis, also the president of the National Treasury Employees Union, Chapter 66, expressed concern: “We don’t know for sure if it is going to impact other than probationary employees.”
A spokesperson from the Treasury Department did not provide comments on the situation.
These layoffs are part of a broader initiative under the Trump administration aiming to reduce the federal workforce size by targeting newer hires across various agencies, who have fewer workplace protections compared to their more senior colleagues.
The IRS, amid recent hiring efforts to bolster agency services, finds itself particularly vulnerable to these layoffs. Following a notable infusion of $80 billion in one-time funding from Congress in 2022, the agency initially prioritized enhancing its customer service capabilities before later shifting its focus to enforcement improvements. Between 2021 and 2024, the workforce expanded by approximately 25%, exceeding 100,000 employees.
The departure of newer employees could significantly affect the agency, which faces ongoing challenges relating to high attrition rates and an aging workforce—nearly two-thirds of IRS employees are eligible for retirement within the next six years.
Former IRS Commissioner Chuck Rettig, who led the agency during Donald Trump’s initial term, criticized the planned layoffs, claiming: “An underfunded IRS significantly benefits unidentified, noncompliant taxpayers at the direct expense of compliant taxpayers,” as he noted on LinkedIn.
Ramin Sohrabi contributed to this report for TROIB News
The upcoming cuts are anticipated to significantly impact enforcement personnel, who comprise a large portion of the agency's recent hires, potentially affecting tax collection efforts. The agency is also cautious about reducing taxpayer service staff as millions of Americans have begun filing their taxes, a process that will continue until April 15.
Details on whether additional layoffs will follow remain unclear, according to a source familiar with the agency's plans.
In a video message directed at employees at the Kansas City facility, a union representative announced an unspecified number of layoffs in that location. Shannon Ellis indicated that “we received notification today that employees in SB/SE who are on probation are scheduled for termination,” referring to the agency’s Small Business/Self Employed Division.
Further in the message, Ellis stated: “Our probationary employees will be removed as of tomorrow — we don’t know what time, we don’t know how it's going to happen, we don’t even know if it includes all of our probationary employees."
Ellis, also the president of the National Treasury Employees Union, Chapter 66, expressed concern: “We don’t know for sure if it is going to impact other than probationary employees.”
A spokesperson from the Treasury Department did not provide comments on the situation.
These layoffs are part of a broader initiative under the Trump administration aiming to reduce the federal workforce size by targeting newer hires across various agencies, who have fewer workplace protections compared to their more senior colleagues.
The IRS, amid recent hiring efforts to bolster agency services, finds itself particularly vulnerable to these layoffs. Following a notable infusion of $80 billion in one-time funding from Congress in 2022, the agency initially prioritized enhancing its customer service capabilities before later shifting its focus to enforcement improvements. Between 2021 and 2024, the workforce expanded by approximately 25%, exceeding 100,000 employees.
The departure of newer employees could significantly affect the agency, which faces ongoing challenges relating to high attrition rates and an aging workforce—nearly two-thirds of IRS employees are eligible for retirement within the next six years.
Former IRS Commissioner Chuck Rettig, who led the agency during Donald Trump’s initial term, criticized the planned layoffs, claiming: “An underfunded IRS significantly benefits unidentified, noncompliant taxpayers at the direct expense of compliant taxpayers,” as he noted on LinkedIn.
Ramin Sohrabi contributed to this report for TROIB News
