US: Trump Administration Cuts 6,700 IRS Jobs Amid Tax Season

JOB CUTS AT THE IRS

The Trump administration has initiated significant layoffs at the Internal Revenue Service (IRS), eliminating approximately 6,700 jobs as part of its broader effort to reduce the federal workforce. The cuts come at a critical time when millions of Americans are in the process of filing their tax returns.

IMPLEMENTATION OF THE LAYOFFS

The administration has tasked Elon Musk’s Department of Government Efficiency (Doge) with overseeing the downsizing as part of a larger cost-cutting initiative. According to an internal email obtained by CBS News, the affected employees are primarily probationary workers who "were not deemed as critical to filing season."

Probationary employees generally include those who have been in their roles for less than a year or long-serving employees who recently transitioned to new positions. 

Reports indicate that nearly half of the layoffs will impact the Small Business/Self-Employed (SBSE) Division, which handles tax compliance for small businesses and self-employed individuals.

IMPACT ON IRS OPERATIONS

In an internal memo, SBSE Commissioner Lia Colbert confirmed that "over 3,500 SB/SE probationary hires will be terminated by the end of this week." As of the 2023 fiscal year, the IRS employed approximately 83,000 people.

Many of the affected roles are reportedly linked to compliance efforts—positions that ensure taxpayers meet their obligations. 

POLITICAL CONTEXT AND REACTIONS

The layoffs come after the Biden administration secured $80 billion in funding for the IRS to improve staffing and enhance tax enforcement. However, Republicans, who have long advocated for limiting the agency’s budget, opposed the funding and have supported efforts to scale back its workforce.

SOURCES/ RECOMMENDED READ:

• https://www.bbc.com/news/articles/c75762x20kro

• https://www.nytimes.com/2025/02/24/opinion/irs-taxes-trump.html