The Trump administration plans to lay off over 6,000 employees at the Internal Revenue Service (IRS) by the end of the week, striking during the crucial US tax season. The Small Business/Self-Employed (SBSE) Division will bear the brunt of these cuts, accounting for half of the total layoffs. This move is part of a broader cost-cutting initiative aimed at significantly reducing the federal workforce.
Currently, the IRS employs approximately 83,000 people, and this reduction in staff comes at a time when millions of Americans and businesses depend on the agency to process their taxation documents. Probationary employees, who have been with the agency for less than a year, will not receive severance, highlighting the abrupt nature of these dismissals. The IRS is tasked with managing the country's taxation system and facilitating tax season operations.
The Biden administration had previously secured $80 billion in funding to enhance the IRS's auditing, investigative, and enforcement capabilities. However, Republicans opposed this effort and have historically advocated for cuts to the agency. This latest round of layoffs reinforces a trend that has seen hundreds of thousands of federal employees either voluntarily leave or be terminated. There are even discussions about dismantling some government agencies entirely.
The IRS will notify affected staff on Thursday. The timing of these layoffs, coupled with ongoing legal battles, leaves many workers uncertain about their futures and raises questions about how these changes will impact Americans who rely on IRS services. Lia Colbert and Maha Williams commented that those losing their jobs "were not deemed as critical to filing season," suggesting an attempt to mitigate disruption during this busy period.
Efforts to delay or contest the layoffs are currently unfolding in court, adding further uncertainty to an already challenging situation. The Treasury Department has been contacted by the BBC for comment, but no response has been provided at this time.