Here’s what Trump is doing.
The IRS is set to cut thousands of probationary workers in the middle of tax season, with layoffs potentially beginning next week, according to multiple sources familiar with the plans. This development comes as part of the Trump administration’s continued efforts to reduce the size of the federal workforce. Agencies have been instructed to eliminate probationary employees—those who have not yet earned civil service protection—as part of the push to streamline government operations.
While the precise number of IRS workers affected is still unclear, this move is likely to further complicate the tax season, which officially started on January 27, 2025. The agency is anticipating a surge in filings, with over 140 million tax returns expected by the April 15 deadline. The timing of these layoffs could put additional pressure on the IRS staff already dealing with the intense workload of tax season.
This workforce reduction is consistent with the Trump administration’s broader strategy to reduce federal spending, which includes a plan to offer buyouts to federal employees through a “deferred resignation program.” This program would allow employees to leave the government while still receiving their paycheck until September 30, provided they accept the offer by February 6. However, IRS workers involved in the 2025 tax season were instructed that they would not be eligible to accept buyouts until after the tax filing deadline, as the agency needs all hands on deck to manage the filing process.
Despite President Biden’s administration having invested heavily in the IRS with an $80 billion funding increase as part of the Democrats’ Inflation Reduction Act, Republicans have fought back against this expansion. They’ve successfully reduced the funds designated for the agency and have worked to curb the growth of government bureaucracy. Public figures like Elon Musk, alongside organizations calling for federal government restructuring, have pushed for the elimination of entire agencies to better control government spending.
As this debate continues, legal challenges are also emerging. Attorneys general from 14 states filed a lawsuit against the Department of Government Efficiency (DOGE), questioning its authority to wield unchecked power and access sensitive government data. The lawsuit argues that such powers should only be exercised by Senate-confirmed officials, as outlined in the Constitution. These legal battles reflect the growing tension between efforts to limit government control and the push for government reforms.