IRS to Lay Off Thousands of Probationary Workers Amid Tax Season
The layoffs align with directives from the Trump administration, which has ordered federal agencies to dismiss probationary employees who have not yet gained civil service protections.
WASHINGTON — The Internal Revenue Service (IRS) is set to lay off thousands of probationary employees in the middle of the 2025 tax season, according to sources familiar with the agency’s plans. The job cuts, which could take effect as early as next week, come as part of a broader effort to downsize the federal workforce.
The layoffs align with directives from the Trump administration, which has ordered federal agencies to dismiss probationary employees who have not yet gained civil service protections. While the exact number of IRS employees affected remains unclear, the move could add strain to an already demanding tax season.
The IRS previously sought to reduce its workforce through a “deferred resignation program,” offering buyouts to nearly all federal employees. Under this program, employees who accepted the offer would receive a paycheck until Sept. 30 despite ceasing work. However, IRS employees actively involved in the 2025 tax season were informed they would be ineligible for buyouts until after the April 15 filing deadline, according to an internal agency letter.
The tax agency, which officially launched the 2025 filing season on Jan. 27, anticipates receiving more than 140 million tax returns. The Biden administration had funneled $80 billion into the IRS as part of the Inflation Reduction Act, aiming to improve customer service, enforcement, and technological updates. However, congressional Republicans have succeeded in rolling back portions of that funding.
The layoffs also coincide with broader restructuring efforts led by billionaire Elon Musk, head of the Department of Government Efficiency (DOGE), who has advocated for eliminating entire federal agencies to streamline government spending. The initiative has drawn fierce opposition from elected officials, with attorneys general from 14 states filing a federal lawsuit in Washington on Thursday. The suit argues that Musk’s directives exceed his authority and should be carried out only by Senate-confirmed officials.
Neither the IRS nor the U.S. Treasury Department has commented on the layoffs. With tax season in full swing, the workforce reduction could pose challenges for both taxpayers and agency operations.
