IRS to Lay Off Thousands Amid Biden Administration Efforts

The Internal Revenue Service (IRS) is preparing to lay off thousands of employees as soon as next week, according to three sources familiar with the matter. This move comes as part of a broader effort by the Trump administration to significantly reduce the federal workforce.

In a recent order, the Office of Personnel Management instructed agencies across the government to terminate probationary employees, who are relatively new to their positions and lack job protection. The impact on the IRS is still unclear, but it could interfere with the agency’s work processing millions of Americans’ tax returns.

Treasury Secretary Scott Bessent stated in an interview that the department would limit changes until after tax season ends in the spring. “So I don’t imagine anything’s going to go on at the IRS until then or beyond,” he said. The IRS has grown its workforce significantly under the Biden administration, with around 100,000 employees.

The move is part of a broader trend of reducing government employment under the Trump administration. Republicans have criticized the increased IRS personnel as targeting middle-class taxpayers. Elon Musk’s team, which focuses on cost-cutting and efficiency, has also shown interest in the agency. A representative from the Department of Government Efficiency was seen at the IRS headquarters last week, further indicating the scope of the layoffs.

Source: https://www.nytimes.com/2025/02/14/us/politics/irs-layoffs.html