The Trump administration is expected to start laying off thousands of employees at the Internal Revenue Service (IRS), with sources saying it’s a deliberate move by billionaire Elon Musk’s team to target tax collections. Republicans have long aimed to reduce the size of the tax agency, and this move may weaken President Biden’s efforts to bolster enforcement.
The IRS has grown by 10% over the past year, adding around 10,000 new employees, bringing the total number of staff to 100,000. However, with the “deferred resignation” plan for federal personnel now out of effect, speculation is that cuts will focus on tax collection staff. This could lead to reduced revenue as the agency reduces its workforce.
Experts warn that these layoffs could have a significant impact on the health of the tax system and may be seen as beneficial by Congressional Republicans. The Trump administration’s shift in priorities has left many IRS employees feeling undervalued, with some already having been laid off or forced to quit under previous plans.
The news comes as Elon Musk’s team begins to implement changes at the IRS, with meetings taking place between high-ranking officials and associates of Musk’s team. This marks a significant shift in the agency’s priorities, with tax collection expected to be a key focus area.
Source: https://www.washingtonpost.com/business/2025/02/14/irs-tax-doge-musk