The IRS is set to lay off about 7,000 workers, primarily probationary employees, starting Thursday. These layoffs are part of a broader effort under the Trump administration to reduce the size of the federal workforce.
The affected employees mostly work in compliance roles, which involve ensuring taxpayers follow the tax code. Despite the layoffs, the IRS is still under pressure to boost revenue collection, particularly from high-wealth tax evaders, and will continue to play a key role in tax services.
There is also a shift in personnel, with some IRS workers potentially being reassigned to assist the Department of Homeland Security DHS with immigration enforcement efforts, as requested by DHS Secretary Kristi Noem.
The plan underscores broader governmental priorities, including reducing government spending and bolstering enforcement efforts in other areas.
The full impact of these layoffs on tax services and collections remains unclear, but it’s likely that the IRS’s role in targeting wealthy tax evaders will continue to be a focus.