IRS Plans 6,700 Job Cuts Amid Layoff Wave

The Trump administration is set to lay off approximately 6,700 employees at the IRS, primarily targeting probationary staff who are deemed non-essential. This decision comes as part of a broader effort to reduce the federal workforce, with more than 3,500 positions expected to be cut specifically in the Small Business/Self-Employed Division. The layoffs coincide with the upcoming tax season, raising concerns about the IRS's capacity to assist taxpayers effectively, given that the agency had previously expanded its workforce under the Biden administration. Emails from IRS management indicated that staff were instructed to report to the office with their government equipment, signaling imminent terminations. Critics fear that these cuts could exacerbate existing understaffing issues, complicating operations during peak filing periods. This move follows significant budget reductions imposed by the Fiscal Responsibility Act, which rescinded funds initially allocated to the IRS under the Inflation Reduction Act.