The Internal Revenue Service (IRS) is set to terminate approximately 7,000 employees across the nation, starting this Thursday, as confirmed by a source familiar with the situation.

This workforce reduction mainly impacts probationary employees who have been with the agency for about a year or less, particularly those in compliance roles. Compliance work entails ensuring that individuals adhere to the tax code, including filing their returns and meeting tax obligations. The person providing this information preferred to remain anonymous due to the sensitivity of the disclosure.

These layoffs are part of a broader initiative by the Trump administration aimed at reducing the federal workforce. This movement, driven by the Department of Government Efficiency, has prompted various agencies to dismiss almost all probationary employees lacking civil service protection. Interestingly, IRS staff involved in the upcoming 2025 tax season were informed just recently that they could not accept voluntary buyouts until mid-May, which coincides with the deadline for tax submissions.

The implications of these layoffs on tax collection services remain uncertain. As the primary revenue agency, the IRS was tasked, during the Biden administration, with focusing on high-net-worth tax evaders as a means of generating additional revenue for a nation grappling with a $36 trillion debt. By the conclusion of 2024, reports indicate that over $1.3 billion in back taxes had been collected from affluent individuals attempting to evade their tax responsibilities.

Currently, the IRS employs around 90,000 individuals nationwide, with racial minorities constituting 56% of the entire workforce and women making up 65%. Aside from the impending job cuts, the Trump administration also plans to deploy IRS personnel to the Department of Homeland Security (DHS) to support immigration enforcement efforts. In a recent correspondence, DHS Secretary Kristi Noem requested IRS personnel from Treasury Secretary Scott Bessent to assist with ongoing immigration initiatives.

There has been no response from representatives of the IRS or the U.S. Treasury regarding inquiries about these developments.