IRS Plans 50% Staff Cuts, Risks Tax Refund Delays

The Trump administration is reportedly considering a significant reduction of the IRS workforce, potentially cutting it by half, which has raised alarm among lawmakers and tax experts. This drastic measure could cripple the agency's ability to process tax returns and deliver timely services, as it already faces challenges due to previous layoffs and budget cuts. Over 130 Democratic lawmakers have expressed concerns that such cuts would exacerbate existing issues and undermine the IRS's effectiveness. Former IRS officials, including John Koskinen, have warned that a drastic reduction could render the agency dysfunctional. Experts suggest that the cuts may result from attrition due to an aging workforce rather than immediate layoffs. The IRS has yet to respond to the proposed staffing changes, and no formal plan has been approved by the White House or Treasury Department.