IRS to Lay Off 7,000 Probationary Workers Starting Thursday, According to AP Source

The IRS is set to lay off approximately 7,000 workers across the country, beginning on Thursday, according to an individual familiar with the matter who spoke to The Associated Press.

These cuts primarily target probationary employees with less than a year of service at the agency, and many of those affected work within the compliance departments.

Key Details of the Layoffs

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The affected employees are those who are still in their probationary period and have not yet secured civil service protections.

A significant portion of the layoffs will impact individuals working in compliance roles, which involve ensuring that taxpayers comply with tax codes, file their returns, and pay their taxes accurately.

The Trump Administration’s Push for Federal Workforce Cuts

These layoffs are part of the broader initiative by the Trump administration to reduce the size of the federal workforce. This initiative, implemented through the Department of Government Efficiency, mandates the dismissal of most probationary employees who have not yet gained full civil service status.

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While efforts like these aim to shrink government employment, employees in key departments, including the IRS, were previously informed that they could not accept buyout offers until mid-May 2025, after the taxpayer filing deadline.

Impact on IRS Services and Tax Collection

The potential effects of these layoffs on the IRS’s tax collection services are still uncertain. As the U.S. government’s primary revenue collector, the IRS was assigned a key role under the Biden administration in targeting high-wealth tax evaders.

This initiative was intended to generate additional income, especially as the country faces a $36 trillion debt. By the end of 2024, the IRS had already collected more than $1.3 billion in back taxes from wealthy individuals who had previously evaded payment.

IRS Workforce Demographics

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According to the latest available data, the IRS employs around 90,000 people nationwide. Of this workforce, 56% are racial minorities, while 65% are women. These figures highlight the agency’s diverse makeup.

Plans to Shift IRS Employees to DHS

In addition to the job cuts, the Trump administration is also planning to reassign some IRS employees to the Department of Homeland Security (DHS).

According to a letter sent earlier this month, DHS Secretary Kristi Noem requested that Treasury Secretary Scott Bessent lend IRS staff to assist with ongoing immigration enforcement efforts.

IRS and U.S. Treasury’s Response

Representatives from both the IRS and U.S. Treasury did not respond to inquiries from The Associated Press regarding the upcoming layoffs and the broader workforce changes.

The IRS layoffs represent a significant restructuring of the federal workforce, affecting thousands of employees, particularly those in compliance roles.

As the Trump administration pushes for smaller government and reallocates staff to other departments, the future of IRS services and tax collection remains uncertain.

However, these changes come at a time when the IRS has been focusing on collecting revenue from high-wealth tax evaders to address the nation’s growing debt.

FAQs

Who will be affected by the IRS layoffs?

The layoffs will impact probationary employees who have been with the IRS for less than a year. Most of these workers are in the compliance departments, which oversee tax filings and ensure that taxpayers are following tax laws.

How many IRS employees are there in total?

The IRS employs approximately 90,000 people across the United States, with 56% of the workforce being racial minorities and 65% being women.

Will the layoffs affect tax collection services?

The exact impact of these layoffs on tax collection services is unclear, but it could potentially disrupt efforts to target wealthy tax evaders, an initiative introduced during the Biden administration.