The Internal Revenue Service (IRS) has decided to halt its plans for layoffs and is focusing on restaffing its workforce.
A spokesperson for the Treasury remarked, “The IRS is working to modernize and implement President Trump’s agenda, which includes a significant piece of legislation. Thus, we are dedicated to ensuring that institutions are staffed correctly to serve Americans efficiently.”
This approach marks a shift from previous months of uncertainty and job reductions, especially following the departure of Commissioner Billy Long.
Since February, the IRS has attempted to decrease its workforce from 100,000 to 60,000 employees.
They terminated 6,700 employees on February 20, primarily targeting a team responsible for tax compliance. In March, the IRS planned additional cuts for staff in the National Taxpayers Association (NTA), which reports on IRS services to Congress. Then, in April, the Office of Compliance and Civil Rights was shut down based on recommendations for a 20% overall workforce reduction.
Back in February, Kevin Hassett, the chair of the White House Economic Advisors Council, commented on the need for a more efficient tax collection workforce, suggesting there might be too many employees in the IRS. He stated, “I think our aim is to ensure that the workers we compensate are productive and effective.” He noted that not all of the over 100,000 employees were fully engaged in their jobs.
There have been previous signs indicating the IRS might be reconsidering its approach.
On August 1, a memo revealed that the Civil Rights Office would remain operational, reversing the earlier decision to close it. This information was reported by Federal News Network.
Concerns arose that the layoffs could complicate tax season logistics. In 2024, less than a third of the calls to the IRS were successfully answered.
Additionally, in July, Congressional Democrats reached out to the IRS after their members experienced “bounceback” emails without any responses, raising issues about constituent service.
While these cuts align with a broader initiative by the Trump administration to downsize federal employment, the IRS has gained attention due to the Biden administration’s investments in tax collection agencies.
The Trump administration claims that it intends to reduce the number of federal workers by around 150,000 starting in February, aiming for greater government efficiency. By late 2025, projections estimate that the workforce could shrink by 300,000 through layoffs and job acquisitions.
