IRS layoffs exceed 6,000 amid tax season crisis

In a significant move amid tax season, the IRS has laid off approximately 6,700 employees, predominantly targeting newer, probationary staff as part of the Trump administration's broader initiative to downsize the federal workforce, spearheaded by Elon Musk. The layoffs, which represent about 6-7% of the agency's total workforce, are anticipated to lead to delays in tax refund processing and increased difficulties for taxpayers seeking assistance. Experts warn that the cuts will hinder the IRS's ability to collect taxes effectively, particularly from wealthier individuals, as the agency has already struggled with resource allocation in recent years. Financial analysts indicate that the cuts could exacerbate the current inefficiencies within the IRS, where a significant percentage of customer service calls go unanswered. Critics, including former IRS officials, have expressed concern that such drastic measures during peak filing season could undermine the agency's operational stability. This downsizing follows a previous expansion under President Biden, which aimed to enhance enforcement against tax evasion by wealthy individuals.