Mass Exodus of Workers Hits the IRS
A proposal from the Trump administration aims to eliminate between 30,000 and 40,000 positions at the agency. Meanwhile, 22,000 employees have indicated a desire for "deferred resignation."
TroibNews 
The IRS may experience a significant reduction in its workforce, with up to 40 percent of employees potentially leaving due to a mix of buyouts initiated by the Trump administration and extensive layoffs, as revealed in an internal memo obtained by PMG.
The memo indicates the agency's goal is to lower its workforce to between 60,000 and 70,000 employees, down from the previous count of around 100,000. Notices regarding "reductions in force" are set to be distributed this week, with the memo specifying that "taxpayer services and compliance will need to be trimmed."
To date, approximately 22,000 IRS employees have chosen to accept the administration’s latest “deferred resignation” buyout offer, according to an anonymous source familiar with the plans.
These developments suggest that the IRS could face a considerable workforce decline just as the 2025 tax filing season wraps up on Tuesday night. This figure is in addition to the 7,000 probationary employees the IRS let go earlier this year and up to 5,000 employees who took the administration's initial deferred resignation offer.
Some tax experts are concerned that the abrupt budget cuts may result in the Treasury missing out on hundreds of billions in tax revenue, potentially expediting Congress's need to address the debt limit.
A spokesperson for the Treasury Department stated that the cuts would bring about "consolidation of critical support functions" that "are vital to improve both efficiency and quality of service," labeling the agency's expansion during the Biden administration as "wasteful."
"The [Treasury] Secretary is committed to ensuring that efficiency is realized while providing the collections, privacy, and customer service the American people deserve,” the spokesperson remarked.
The total expected resignations remain uncertain, as employees who have chosen the deferred resignation program could still decide to remain during a grace period.
Once an employee is presented with a deferred resignation agreement, they have a specific timeframe to sign it. Employees over 40 have 45 days to review and sign, followed by seven days to change their minds.
Under Office of Management and Budget regulations, federal employees must receive a 60-day notice of reduction in force if their position is being terminated. As of Monday afternoon, only one IRS office had received a RIF notice, according to the source familiar with the plans, although many more are anticipated.
Jessica Kline for TROIB News
The memo indicates the agency's goal is to lower its workforce to between 60,000 and 70,000 employees, down from the previous count of around 100,000. Notices regarding "reductions in force" are set to be distributed this week, with the memo specifying that "taxpayer services and compliance will need to be trimmed."
To date, approximately 22,000 IRS employees have chosen to accept the administration’s latest “deferred resignation” buyout offer, according to an anonymous source familiar with the plans.
These developments suggest that the IRS could face a considerable workforce decline just as the 2025 tax filing season wraps up on Tuesday night. This figure is in addition to the 7,000 probationary employees the IRS let go earlier this year and up to 5,000 employees who took the administration's initial deferred resignation offer.
Some tax experts are concerned that the abrupt budget cuts may result in the Treasury missing out on hundreds of billions in tax revenue, potentially expediting Congress's need to address the debt limit.
A spokesperson for the Treasury Department stated that the cuts would bring about "consolidation of critical support functions" that "are vital to improve both efficiency and quality of service," labeling the agency's expansion during the Biden administration as "wasteful."
"The [Treasury] Secretary is committed to ensuring that efficiency is realized while providing the collections, privacy, and customer service the American people deserve,” the spokesperson remarked.
The total expected resignations remain uncertain, as employees who have chosen the deferred resignation program could still decide to remain during a grace period.
Once an employee is presented with a deferred resignation agreement, they have a specific timeframe to sign it. Employees over 40 have 45 days to review and sign, followed by seven days to change their minds.
Under Office of Management and Budget regulations, federal employees must receive a 60-day notice of reduction in force if their position is being terminated. As of Monday afternoon, only one IRS office had received a RIF notice, according to the source familiar with the plans, although many more are anticipated.
Jessica Kline for TROIB News
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