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The Internal Revenue Service (IRS) is preparing to terminate more than 6,000 employees by the end of the week, marking one of the most significant workforce reductions in the agency’s history.
According to an internal email obtained by CBS News, more than half of the affected employees—over 3,500—will come from the IRS Small Business/Self-Employed (SBSE) Division, a crucial unit that assists small businesses with tax compliance and debt resolution.
The layoffs are part of a broader initiative directed by the Trump administration under an executive order aimed at reducing federal government personnel, particularly probationary hires. “Under an executive order, the IRS has been directed to terminate probationary employees who were not deemed as critical to the filing season,” the email stated.
The news comes at a critical time, as the tax filing season is approaching its peak between mid-March and mid-April. The SBSE division, which serves more than 57 million small business owners and entrepreneurs, is expected to be significantly impacted.
“These cuts will inevitably cause delays in tax assistance, audits, and debt resolution,” said a senior IRS employee who spoke on condition of anonymity. “With fewer staff available, small businesses will have a harder time getting the help they need.”
The anticipated layoffs also follow reports that a Department of Government Efficiency (DOGE) employee attempted to access an internal IRS database containing sensitive taxpayer information. While no breach has been confirmed, the attempt has raised concerns about potential political interference in the agency’s operations.
The decision to cut thousands of IRS jobs is already drawing scrutiny from lawmakers and federal employee unions. “This is an attack on the civil service and on working Americans who rely on a fully functional IRS,” said Rep. Richard Neal (D-MA), ranking member of the House Ways and Means Committee. “Slashing IRS staff at the height of tax season will only make it harder for taxpayers to get the help they need.”
In addition to the layoffs, the Trump administration recently introduced a “deferred resignation” buyout program, allowing federal employees to resign while retaining pay and benefits until September 30. More than 75,000 federal workers opted into the program before the deadline, though it remains the subject of legal challenges.
Despite the cuts, the IRS still employs tens of thousands of workers, with 82,990 full-time equivalent positions in 2023. However, the loss of probationary employees, particularly in divisions that handle tax compliance and enforcement, is expected to create operational strain.
The White House and IRS have yet to issue an official statement on the layoffs.
