Barbara La Puma waits in line for assistance at the Internal Revenue Service office in Nashville on April 15, 1985, after running into trouble while trying to figure out her 1984 income taxes on the last day.
Washington D.C. – The Internal Revenue Service began implementing sweeping layoffs Friday, starting with the agency’s Office of Civil Rights and Compliance. The cuts are part of a broader plan to eliminate nearly a quarter of the IRS’s workforce in a move aimed at restructuring the agency and boosting efficiency.
The email, sent to IRS staff, stated that the reduction in force will be phased in and affect “multiple offices and job categories.” The Office of Civil Rights will effectively be dissolved, with remaining staff reassigned to the Office of Chief Counsel.
“This action is being taken to increase the efficiency and effectiveness of the IRS in accordance with agency priorities,” the email read.
Sources familiar with the plan said that the IRS, which currently employs about 100,000 people, is preparing to cut between 18% and 20% of its workforce by mid-May. The move comes amid broader efforts by the Trump administration to roll back what it deems excessive Biden-era hiring and consolidate support functions across the federal government.
A spokesperson for the Treasury Department said the layoffs are driven by “process improvements and technological innovations” that will improve taxpayer service and revenue collection. “The Secretary is committed to ensuring that efficiency is realized while providing the collections, privacy, and customer service the American people deserve,” the spokesperson added.
Employees affected by the layoffs will be offered early retirement incentives starting next week, the email stated.
Meanwhile, approximately 50 IT security personnel were recently placed on administrative leave, raising concerns about the IRS’s cybersecurity capabilities during tax season. While the Trump administration insists that staff involved in processing tax returns will not be impacted, former IRS officials warn that any reduction in workforce during filing season could be disastrous.
“Forever, it has been an absolute rule of thumb that you keep things stable during filing season,” one former IRS commissioner told ABC News. “The idea that nearly 10% of the entire IRS workforce is being laid off right in the middle of filing season is extremely risky.”
Earlier this year, over 4,000 employees accepted deferred resignation packages, and 6,600 probationary staff were terminated—though many have since been reinstated by court order. It remains unclear whether either group will be impacted by the latest layoffs.
The White House has not responded to requests for comment.
