IRS to terminate numerous probationary employees during peak tax season

WASHINGTON – The Internal Revenue Service (IRS) is set to dismiss thousands of probationary employees during the ongoing tax season, as per two insiders familiar with the agency’s strategies. These layoffs could potentially commence as early as next week.

This move follows the Trump administration’s broader initiatives to reduce the federal workforce by instructing various agencies to terminate nearly all probationary staff lacking civil service protections.

Details regarding the specific number of IRS employees who will be impacted remain uncertain. Earlier, the administration had introduced a deferred resignation program aimed at reducing the government workforce through voluntary buyouts for many federal employees. The deadline for participating in this program was February 6, with officials indicating that those who chose to leave would receive a paycheck until September 30, even during their time away from work.

However, IRS employees who are involved in the current tax season have been informed via a recent communication that they will have to wait until after the tax filing deadline to accept the buyout offer.

While the exact number of workers affected by the anticipated layoffs is still unknown, representatives from the U.S. Treasury and the IRS have yet to respond to requests for clarification regarding these developments. January 27 marked the official start of the 2025 tax season, during which the IRS expects over 140 million tax returns to be submitted by the April 15 deadline.

In a bid to support the IRS, the Biden administration had invested significantly, allocating $80 billion through the Inflation Reduction Act. This investment aims to bolster hiring efforts, enhance customer service operations, and upgrade the agency’s technology to improve tax collection. Conversely, some Republicans have successfully advocated for the retraction of these funds. Furthermore, Elon Musk and his Department of Government Efficiency have proposed drastic measures, including the elimination of entire federal agencies, as part of an initiative to substantially trim government spending and redistribute its priorities.

In reaction to the government efficiency proposals, elected officials have begun to contest them. Recently, attorneys general from 14 states filed a lawsuit in federal court in Washington questioning Musk’s authority to gain access to sensitive government data and wield considerable unchecked power. This legal action asserts that the steps taken under Musk’s leadership should only be authorized by a duly nominated and Senate-confirmed official, invoking constitutional guidelines that clarify the powers allotted to Congress and the presidency.