IRS Plans Thousands of Layoffs Mid-Tax Season

The IRS is set to lay off thousands of probationary workers during the peak of tax season, with cuts potentially occurring as soon as next week. This move follows directives from the Trump administration aimed at reducing the federal workforce by terminating most probationary employees who lack civil service protection. While the IRS has seen significant investment through the Biden administration's Inflation Reduction Act, which allocated $80 billion to hire new agents, Republicans are actively working to reverse this funding. Employees involved in the 2025 tax season, which began on January 27, are restricted from accepting buyout offers until after the tax filing deadline. The exact number of affected workers remains unclear, as IRS officials have not commented on the situation. The agency anticipates over 140 million tax returns will be submitted by the April 15 deadline, raising concerns about service levels amidst the layoffs.