IRS Workforce Reductions Under Trump Administration
Published in Washington, D.C.
President Trump Set to Address Congress
On Tuesday night, President Donald Trump will deliver his first address to Congress since beginning his second term. The speech, themed “The Renewal of the American Dream,” will outline his plans for the nation. Political analyst Rich Rubino provided insights on this upcoming address during an appearance on LiveNOW from FOX.
IRS Planning Major Job Cuts
The Internal Revenue Service (IRS) is reportedly gearing up for extensive cuts to its workforce, with estimates suggesting up to 45,000 jobs could be at risk. This information was shared by anonymous sources familiar with the matter, as reported by the Associated Press.
Details of the Workforce Reductions
The planned reductions include layoffs, voluntary buyouts, and attrition cuts, all part of a broader initiative led by Elon Musk’s Department of Government Efficiency (DOGE). Notably, the IRS has already made initial moves in this direction by laying off approximately 7,000 probationary employees in February 2025, primarily those with less than one year of service. Additionally, a “deferred resignation program” has been launched to offer buyouts to employees willing to leave voluntarily, with certain restrictions in place until after the April tax deadline in mid-May 2025.
Reassignments to Homeland Security
A significant aspect of the upcoming changes will involve reallocating IRS personnel to the Department of Homeland Security (DHS), responding to a request from DHS Secretary Kristi Noem to assist with immigration enforcement efforts, made in February 2025.
Concerns Over IRS Functionality
There is widespread concern regarding how these cuts may affect the IRS’s operational capacity. Former IRS Commissioner John Koskinen, along with six other past commissioners, has publicly opposed the downsizing, warning that significant staff reductions could cripple the agency’s ability to function effectively. In a statement published by the New York Times, they emphasized that diminished resources could negatively impact tax enforcement, resulting in lower revenue collection and increased federal deficits.
Koskinen’s group highlighted that cutting the IRS workforce would hinder essential activities, such as tax return processing and audits, stating, “Aggressive reductions in the IRS’s resources will only render our government less effective and less efficient in collecting the taxes Congress has imposed.”
Next Steps and Timeline
IRS officials are scheduled to submit a detailed workforce reduction plan to the White House by March 13, 2025. This plan is part of the broader federal downsizing initiative, but its approval and the timeline for implementation remain uncertain. Should the plan be greenlit, a significant segment of the IRS workforce could face layoffs, buyouts, or a reassignment, raising questions about the impact on taxpayer services and enforcement measures.