The IRS is set to lay off thousands of probationary workers amid tax season, with cuts potentially starting as soon as next week, according to sources familiar with the agency’s plans. This move follows the Trump administration’s efforts to reduce the size of the federal workforce by requiring agencies to eliminate nearly all probationary employees who have not yet gained civil service protection. The exact number of affected IRS employees remains unclear.
Earlier, the administration announced a “deferred resignation program” offering buyouts to nearly all federal employees to expedite workforce reductions. The deadline for the program was February 6, with those who accept buyouts able to stop working while still receiving pay until September 30. However, IRS employees involved in the 2025 tax season were informed they could not accept buyout offers until after the taxpayer filing deadline.
The layoff announcement coincides with the IRS’s busy tax season, which began on January 27, with more than 140 million tax returns expected by the April 15 deadline.
This comes despite the Biden administration’s significant investment in the IRS through an $80 billion funding boost aimed at hiring additional staff and improving services and technology.
The Trump administration’s efforts to shrink the federal workforce were further underscored by Musk’s push to reduce federal spending and restructure government agencies, with some calling for entire agencies to be eliminated. Meanwhile, 14 state attorneys general filed a lawsuit challenging Musk’s authority to manage sensitive government data, asserting that such powers should only be exercised by Senate-confirmed officials.
