The Internal Revenue Service (IRS) is reportedly preparing to reduce its workforce by up to 50%, as part of the Trump administration’s broader initiative to downsize the federal government.
According to CNN, the plan will be executed through layoffs, attrition, and incentivized buyouts.
With approximately 90,000 employees nationwide, the IRS plays a critical role in tax administration. The agency’s workforce is notably diverse, with 56% comprising people of colour and 65% women. The downsizing efforts have already commenced, with the agency laying off around 7,000 probationary employees—those with less than one year of service—in February.
The administration’s strategy includes a “deferred resignation program,” offering buyouts to federal employees. However, IRS staff engaged in the 2025 tax season have been informed they will not be eligible for these offers until mid-May, after the tax filing deadline.
In addition to workforce reductions, the Trump administration has proposed reassigning IRS employees to support immigration enforcement under the Department of Homeland Security (DHS). A letter sent in February by DHS Secretary Kristi Noem to Treasury Secretary Scott Bessent requested IRS personnel be made available for these efforts.
Meanwhile, a White House directive issued in late February has instructed federal agencies to submit workforce reduction reports by March 13. It remains uncertain whether the IRS restructuring proposal will receive final approval or the timeline for its potential implementation.
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