IRS may lay off thousands of workers in the middle of tax season
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The Internal Revenue Service (IRS) is reportedly cutting thousands of probationary workers as tax season ramps up.
Two sources familiar with the plans told The Associated Press that cuts could come as soon as this week.
Trump federal employee buyout
The backstory:
Since President Donald Trump began his second term last month, he has focused on dramatically reducing the federal workforce.
Trump ordered agencies to lay off nearly all probationary employees who had not yet gained civil service protection.
Additionally, the Trump administration previously announced a plan spearheaded by Elon Musk to offer buyouts to almost all federal employees through a "deferred resignation program." Musk is serving as Trump’s top adviser for reducing federal spending. The program deadline was Feb. 6, and administration officials said employees who accept will be able to stop working while still collecting a paycheck until Sept. 30.
RELATED: Federal worker buyout deadline: What we know about the deferred resignation program
FILE - The Internal Revenue Service (IRS) building in Washington, DC, US, on Tuesday, Dec. 31, 2024. Photographer: Samuel Corum/Bloomberg via Getty Images
What we know:
The Associated Press reported that IRS employees involved in the 2025 tax season were told they will not be allowed to accept a buyout offer from the Trump administration until after the taxpayer filing deadline, according to a letter sent recently to IRS employees.
What we don't know:
It is unclear how many IRS workers will be impacted by the layoff announcement plan.
It’s also unclear how the layoffs would affect IRS processings, such as the disbursement of tax refunds.
Big picture view:
Jan. 27 was the official start date of the 2025 tax season, and the IRS expects more than 140 million tax returns to be filed by the April 15 deadline.
RELATED: Where's my refund? How to track your IRS tax return
IRS funding
The other side:
The Biden administration invested heavily - $80 billion - in the IRS, which included plans to hire tens of thousands of new employees to help with customer service and enforcement as well as new technology to update the tax collection agency.
Republicans have been successful at clawing back that money.
Federal government employees
By the numbers:
The civilian federal workforce, not including military personnel and postal workers, comprises about 2.4 million people.
While a chunk of federal workers, about 20%, are in Washington, D.C., and the neighboring states of Maryland and Virginia, more than 80% are distributed outside the region.
Trump’s buyout offer has already been accepted by about 65,000 employees, FOX News reported.
The Source: Information in this article was taken from The Associated Press, which spoke to two anonymous sources familiar with the IRS layoffs. Background information was taken from The Associated Press and previous FOX Television Station reportings. This story was reported from Detroit.