IRS begins issuing Reduction In Force notices to employees in preparation for mass layoffs

• The Internal Revenue Service (IRS) has initiated large-scale job cuts, reducing its workforce by over 90,000 employees (down to roughly 10 percent of current staffing). Automation and President Donald Trump’s hiring freeze drive the downsizing, with permanent cuts exceeding seasonal norms.
• In 2022, Biden’s Inflation Reduction Act granted the IRS $80 billion, boosting hiring to >100,000 employees. However, Republicans clawed back funds and Trump froze remaining budgets, reversing prior growth.
• The Office of Civil Rights and Compliance faces a 75 percent staff cut, with remaining employees reassigned. Additional layoffs are expected in phases through April and summer 2024, though reassignments are paused.
• Layoffs coincide with tax season, with some employees (including probationary workers) given 30 minutes to leave. Early retirement/buyout offers are pending, but no specifics disclosed.
• A high-level insider predicts 90 percent of staff will be gone within three years due to automation. Trump’s administration links cuts to efficiency goals, while Biden’s earlier expansion is being dismantled.

The Internal Revenue Service (IRS) has started issuing layoff notices to employees as part of a massive workforce reduction expected to shrink more than 90,000 employees of its current size.

In 2022, the IRS underwent a hiring surge after Congress approved $80 billion in funding through the Inflation Reduction Act under former President Joe Biden, pushing its workforce past 100,000 employees. However, Republicans later reclaimed a portion of those funds, while President Donald Trump has since frozen much of the remaining budget, paving the way for unprecedented cuts.

As a response, the human resources office of the IRS announced in an email sent on April 4 that the Office of Civil Rights and Compliance will be the first to undergo a 75 percent reduction in force. The remaining employees who do not leave through voluntary attrition will be reassigned to the Office of Chief Counsel to fulfill statutory obligations.

Additionally, the IRS emphasized that the civil rights office is just the beginning, signaling further layoffs across the agency as automation continues to reshape operations.

“The IRS has begun implementing a Reduction in Force (RIF) that will result in staffing cuts across multiple offices and job categories. This action is being taken to increase the efficiency and effectiveness of the IRS in accordance with agency priorities,” IRS wrote in the email, adding that this is in line with Trump’s executive orders calling for workforce reductions

These layoffs come at an especially chaotic time for the agency, with the tax filing deadline just days away. Officials have not provided a full timeline for the cuts but indicated they will occur in multiple phases, with additional rounds expected in April and before summer.

“This message is only a notification that the IRS has begun the RIF process and does not serve as your official notification. Each office will receive direct communication when their phase begins,” the agency wrote. (Related: DOGE targets IRS in sweeping government efficiency push.)

Affected employees will receive early retirement and buyout offers, though no specifics have yet been shared. The IRS also instructed staff to upload resumes to an internal portal for potential reassignment – though all relocations are currently paused.

“We remain committed to sharing information as soon as it becomes available and ensuring all employees have access to resources and support. Thank you for your continued professionalism and commitment to supporting our mission.”

IRS started laying off employees in March

The IRS started laying off employees in March, soon after Trump singled them out to stop hiring new agents to allow recently hired personnel to be reassigned elsewhere.

The terminations, reportedly affecting 6,000 relatively new workers, already dismissed half of its staff permanently, well beyond typical seasonal reductions, as automation looms over the agency’s future. A high-level insider predicts that within three years, only 10 percent of the current workforce will remain employed.

National Treasury Employees Union Chapter 32 President Patricia Allen revealed at that time that between 120 and 150 Denver-based IRS employees are being laid off. Many of those affected are probationary employees across divisions, including collections and tax compliance. Some workers were abruptly dismissed and given just 30 minutes to vacate their offices, while others were awaiting a termination email.

White House economic adviser Kevin Hassett suggested the downsizing could expand. “There are many, many more than 100,000 people working to collect taxes, and not all of them are fully occupied,” Hassett said. When asked if cuts could reach 3,500 or more, he hinted at deeper reductions: “Probably can get bigger, especially as we improve the IT at the IRS.” And now, this statement is about to happen.

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Sources include:

GovExec.com

MSN.com

Brighteon.com