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IRS to Lay Off Thousands of Probationary Workers During Critical Tax Season

Jacob Shelton February 17, 2025

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The Internal Revenue Service (IRS) is set to lay off thousands of probationary employees amidst the crucial tax filing period. Sources familiar with the situation indicate that the cuts could be implemented as early as next week.

This decision comes on the heels of the Trump administration’s broader strategy to downsize the federal workforce. A directive has been issued to agencies across the board to terminate nearly all probationary employees who have not yet achieved civil service protection. The scope of the layoffs at the IRS remains uncertain, leaving employees and taxpayers alike anxious about potential disruptions.

In a related effort to streamline operations, the administration previously introduced a “deferred resignation program” aimed at offering buyouts to federal employees. This initiative quickly garnered attention, as employees were given until February 6 to apply for the program, enabling them to leave their positions while still receiving a paycheck until September 30.

An email from the IRS indicates that employees involved in the ongoing tax season will not be able to accept buyout offers until after the April filing deadline. This ordeal makes one wonder about the agency’s capacity to manage workloads while providing adequate service during one of its busiest times of the year.

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