The Internal Revenue Service (IRS) is reportedly drafting plans to slash its workforce by as much as half, potentially reducing its current staff of approximately 90,000 employees through a combination of layoffs, attrition, and incentivized buyouts.
This development, first reported by the Associated Press (AP), has ignited discussions about the implications for tax collection and government efficiency in the United States.
Drawing from multiple mainstream news sources, including AP, CNN, and The New York Times, this article explores the details of the proposed cuts, the political context driving them, and the concerns raised by former IRS officials.
According to the AP, the IRS is considering a dramatic reduction in its workforce, with two anonymous sources familiar with the situation confirming the agency’s intentions.
The cuts would involve a mix of strategies: involuntary layoffs, natural attrition as employees retire or leave, and voluntary buyouts incentivizing early departures.
The federal tax agency, which employs roughly 90,000 workers nationwide, has already seen approximately 7,000 probationary employees—those with less than a year of service—laid off in February 2025.
This initial reduction sets the stage for a broader restructuring that could see the workforce halved, shrinking the IRS to levels not seen in decades.
CNN corroborates this reporting, noting that the IRS has offered buyouts to government employees as part of a “deferred resignation program,” though those involved in the 2025 tax season are barred from accepting until mid-May, after the filing deadline.
This phased approach suggests a strategic effort to maintain operational capacity during peak periods while still pursuing significant downsizing.
The proposed cuts align with broader efforts by the Trump administration to reduce the size of the federal government.
Both AP and CNN highlight the role of billionaire Elon Musk, who heads the newly established Department of Government Efficiency, in driving this initiative.
The administration’s strategy includes closing agencies, terminating probationary employees lacking civil service protections, and offering widespread buyouts to shrink the federal workforce rapidly.
The IRS, a frequent target of conservative criticism, appears to be a focal point of this agenda.
The New York Times, which first reported deliberations about the IRS overhaul, frames the cuts as part of a long-standing Republican goal to diminish the agency’s footprint.
The paper notes that the White House issued a memo in late February 2025, directing federal agencies to submit reduction-in-force plans by March 13.
However, it remains unclear whether the White House will greenlight the IRS’s specific proposal or over what timeline it would be implemented.
Representatives from the White House, Treasury Department, and IRS have not responded to requests for comment, leaving the plan’s final approval in question.
The potential halving of the IRS workforce has drawn sharp criticism from former agency leaders. John Koskinen, a former IRS commissioner, warned in multiple outlets, including AP and CNN, that a reduction of “tens of thousands of employees would render the IRS ‘dysfunctional.’”
Koskinen and six other ex-commissioners penned an op-ed in The New York Times earlier this month, arguing that “aggressive reductions in the I.R.S.’s resources will only render our government less effective and less efficient in collecting the taxes Congress has imposed.”
They contend that such cuts could undermine the agency’s ability to enforce tax laws, potentially leading to revenue losses at a time when the federal budget is already strained.
The IRS’s workforce demographics add another layer to the debate. AP reports that people of color constitute 56% of its employees, while women make up 65%.
Critics argue that significant layoffs could disproportionately affect these groups, raising equity concerns alongside operational ones.
The proposed cuts come amid other reported shifts, such as CNN’s mention of plans to reassign some IRS workers to the Department of Homeland Security for immigration enforcement duties—a move that further complicates the agency’s mission.
Meanwhile, the timing is notable: the IRS is preparing for the 2025 tax season, a critical period that tests its capacity even without staffing reductions.
Skeptics question whether the IRS can execute such a drastic overhaul without collapsing under its current workload.
The agency has faced years of underfunding and staffing shortages, issues partially addressed by the Inflation Reduction Act of 2022, which aimed to bolster its ranks with 87,000 new hires—a plan now seemingly reversed.
The tension between past promises of expansion and the current push for contraction underscores the political volatility surrounding the IRS.
As of now, the plan remains in draft form, with no official confirmation from the White House.
The uncertainty has fueled speculation and concern across the political spectrum. While some view the cuts as a victory for smaller government, others see a risk to the nation’s fiscal stability.
With the March 13 deadline for agency reports looming, the coming weeks will likely clarify the fate of the IRS—and the broader federal workforce—under this bold and contentious proposal.
