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Kiplinger
Kiplinger
Business
Gabriella Cruz-Martínez

IRS Layoffs Spark Delays, Doubt This Tax Season

Former Internal Revenue Service workers leave their office after being laid off in downtown Denver, Colorado on Thursday, February 20, 2025. The IRS began laying off roughly 6,000 employees in the middle of tax season as the Trump administration via the Department of Government Efficiency (DOGE) works to downsize the federal workforce.

The IRS is reportedly preparing to reduce its nearly 100,000 workforce by as much as half through layoffs, buyouts, and attrition — and experts say the disruption is already interfering with this tax season.

Close to 7,000 probationary employees were laid off on February 20, and now the agency is reinstating and placing those workers on paid administrative leave until further notice. That figure adds to about 5,000 IRS employees who have reportedly accepted the Trump administration’s fork-in-the-road deferred resignation offer to cut down federal spending.

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