IRS to cut up to 25% of staff, starting with civil rights office, sources say
House GOP members discuss DOGE cuts with reporters
Members of the Republican party held a press conference where they discussed expected DOGE cuts and supporting President Trump's agenda. This comes as the Department of Health and Human Services have started to layoff staff members as part of DOGE-directed job cuts.
WEST PALM BEACH, Fla. - The Internal Revenue Service has launched a sweeping round of layoffs that could eliminate up to a quarter of its workforce, with thousands of jobs on the chopping block starting this week.
According to multiple sources familiar with the matter, the first wave includes a dramatic downsizing of the IRS Office of Civil Rights and Compliance.
Fewer than 200 people work in the office, but about 75% of those positions are expected to be eliminated, with remaining staff absorbed into the agency’s legal department. The plan is part of the Trump administration’s ongoing campaign to reduce the size of the federal government under the Department of Government Efficiency, led by billionaire Elon Musk.
Why is the IRS cutting so many jobs?
The backstory:
Three people with direct knowledge of the decision told the Associated Press that the layoffs are part of a broader effort to streamline federal operations and reverse hiring increases made during the Biden administration. The IRS had expanded staffing in recent years to help manage backlogs, improve customer service, and enforce tax compliance.
The Trump administration, however, has pushed to roll back many of those changes—starting with agencies viewed as redundant or bloated. A Treasury spokesperson said Friday that staffing reductions are being paired with process improvements and new technologies aimed at helping the agency "operate more effectively."
Which workers are being affected first?
What we know:
The first group of employees impacted were 7,000 probationary workers with less than a year of service.
A sign for the Internal Revenue Service (IRS) is seen outside its building on February 13, 2025 in Washington, DC. (Photo by Kayla Bartkowski/Getty Images)
Those workers were notified in February, though a federal judge has since ordered their reinstatement. Now, the administration is moving ahead with deeper cuts, focusing on internal offices like civil rights and compliance.
The IRS told workers involved in this year’s tax season that they won’t be eligible for buyouts until after the April 15 filing deadline.
The "deferred resignation" program and agency consolidations are designed to encourage voluntary departures while minimizing disruption, Treasury officials say.
What comes next for IRS operations?
What we don't know:
It remains unclear how the cuts will impact day-to-day tax enforcement, processing times, or public-facing IRS services.
While Treasury officials insist the changes will ultimately benefit taxpayers, critics argue the move could weaken accountability and reduce oversight—particularly with the dismantling of the agency’s civil rights office.
Further reductions are expected in the coming months as more support functions are consolidated and administrative roles eliminated.
The Source: This report is based on exclusive information provided to the Associated Press by three individuals familiar with the IRS restructuring plans. The Washington Post first reported the initial wave of IRS layoffs on April 4. Additional details were confirmed by a Treasury spokesperson who spoke on condition of anonymity. Prior reporting by FOX Television Stations on government efficiency efforts under the Trump administration and Elon Musk’s Department of Government Efficiency provided context. This story was reported from Los Angeles.