WEST PALM BEACH, Fla. (AP) — The IRS is set to lay off as many as 20,000 employees, potentially up to 25% of its workforce, starting Friday, according to two sources familiar with the situation who spoke to The Associated Press.
The layoffs will begin with a significant reduction of 75% in the IRS Office of Civil Rights and Compliance, with the remaining staff integrated into the agency’s Office of Chief Counsel, as stated by the two individuals along with a third source. Currently, the Office of Civil Rights and Compliance, previously known as the Office of Equity, Diversity, and Inclusion, employs fewer than 200 workers.
The three sources chose to remain anonymous as they were not authorized to discuss the details of the layoffs. The Washington Post was the first to report about the IRS layoffs on Friday, which involve the revenue collection and enforcement of tax laws.
These workforce reductions are part of the Trump administration’s initiative to decrease the size of the federal bureaucracy under Elon Musk’s Department of Government Efficiency. This effort has included the closure of agencies, the termination of probationary employees lacking civil service protection, and the offering of buyouts through a “deferred resignation program.”
A Treasury spokesperson, who also requested anonymity while discussing upcoming Treasury plans, mentioned on Friday that any personnel reductions are part of broader process improvements and technological innovations aimed at enhancing the IRS’s operational efficiency.
The intention behind reverting hiring practices from the Biden administration and merging support functions is to serve the public more efficiently, as stated by the spokesperson.
The IRS began its workforce reduction efforts in February, notifying around 7,000 probationary employees with a year or less of service that they would be let go.
However, a federal judge has recently mandated that those employees be reinstated.
In March, IRS employees participating in the 2025 tax season were informed that they could not accept a buyout offer from the Trump administration until after the taxpayer filing deadline of April 15.
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