Thousands of IRS workers could be laid off as soon as next week

In a recent letter to IRS employees, RS personnel participating in the 2025 tax season were informed that they would not be permitted to take a buyout option from the Trump administration until after the taxpayer filing deadline.AP

Washington According to two people familiar with the IRS’s intentions, the agency will fire thousands of probationary employees in the midst of tax season, and layoffs may occur as early as next week.

In an attempt to reduce the size of the federal workforce, the Trump administration ordered agencies to fire almost all probationary employees who had not yet received civil service protection.

The number of IRS employees who will be impacted is unknown.

In order to rapidly shrink the size of the government workforce, the administration previously announced a proposal to provide buyouts to nearly all federal employees through a deferred resignation program. According to administration authorities, employees who accept the program would be able to cease working and still receive their paychecks until September 30. The program deadline was February 6.

However, a recent letter to IRS employees working in the 2025 tax season informed them that they would not be permitted to accept a buyout offer from the Trump administration until after the taxpayer filing deadline.

The number of employees affected by the layoff announcement plan is unknown. When Associated Press reached out to U.S. Treasury and IRS officials for comment, they did not reply.

The 2025 tax season officially began on January 27. The IRS anticipates that more than 140 million tax returns will be filed by the deadline on April 15. With a $80 billion investment in the Democrats’ Inflation Reduction Act, the Biden administration made significant investments in the IRS, including plans to update the tax collection agency with new technology and hire tens of thousands of new staff to assist with enforcement and customer service.

Republicans have successfully reclaimed that money, and as part of their plan to drastically reduce spending and reorganize the federal government’s goals, billionaire Elon Musk and his Department of Government Efficiency have demanded that the United States abolish entire federal agencies.

Plans from DOGE are being opposed by elected figures.In a lawsuit filed Thursday, attorneys general from 14 states—including Oregon—contested the department’s access to confidential government information and its almost unrestricted power.

According to the lawsuit, which was submitted to a federal court in Washington, only an official who has been nominated and confirmed by the Senate may conduct the activities that Musk took while leading DOGE. It makes reference to clauses in the constitution that outline the president’s and Congress’s authority.

By Associated Press’s FATIMA HUSSEIN

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