Trump’s IRS Probationary Worker Layoffs Spark Worries About Tax Season

The IRS is facing potential workforce challenges with the impending layoffs of up to 15,000 probationary workers during peak tax season.

Key Insights

The IRS is preparing to lay off thousands of probationary workers as tax season approaches.
This action stems from the Trump administration’s plan to reduce the federal workforce by focusing on employees without civil service protection.
As many as 15,000 IRS employees could be affected by these layoffs.
The 2025 tax season, having started on January 27, anticipates processing over 140 million tax returns by April 15.
Technological and resource enhancements have been part of the IRS’s plan to maintain tax season efficiency.

Layoffs Amid Tax Season

The IRS will lay off thousands of probationary workers in the middle of the tax season, according to two sources familiar with the agency’s plans.

The move to reduce the workforce is part of a directive from the Trump administration, targeting employees lacking the protection of civil service status. Although it’s clear that a significant number of workers are set to be laid off, the exact figure remains uncertain, with estimates suggesting as many as 15,000 could be affected.

IRS will lay off thousands of probationary workers in the middle of tax season https://t.co/twsssEuz6r pic.twitter.com/1TRSy358Rx

— Eyewitness News (@ABC7NY) February 17, 2025

Deferred Resignation Program

Earlier plans included a “deferred resignation program,” offering buyouts to some employees; however, IRS staff involved in the 2025 tax season are required to wait until after the filing deadline to accept these offers. This constraint may further complicate staffing logistics during an already demanding period for the agency.

“For many years, one of the top priorities at the AICPA has been to promote efforts that ensure the IRS has the appropriate resources to meet the needs of taxpayers and preparers,” said Mark Koziel, CEO of the American Institute of CPAs.

Concerns about the potential impact of these layoffs are rising among industry professionals, as the workforce reduction coincides with an anticipated influx of over 140 million tax returns. As the American Institute of CPAs signifies, the IRS’s ability to handle the overwhelming demands during tax processing times with reduced staff is a growing concern for taxpayers and tax preparers alike.

The IRS will lay off thousands of probationary workers in the middle of tax season and cuts could happen as soon as next week.https://t.co/VMvotmrsK8

— 7News DC (@7NewsDC) February 16, 2025

Budget and Efficiency Challenges

The decision to lay off a significant portion of the workforce is also influenced by the broader governmental objective to pare down federal expenditures, spearheaded by the Department of Government Efficiency (DOGE). Notably, engineering magnate Elon Musk has supported such measures, suggesting the elimination of entire federal agencies as a cost-saving strategy.

The IRS previously made strides with technological enhancements and customer service improvements, which had been enabled by investment through policies such as the Inflation Reduction Act. However, the ongoing push by Republican lawmakers to reduce this funding raises additional questions about the agency’s future capability to sustain service standards throughout the tax season and beyond.