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IRS Layoffs Threaten Revenue Collection And Tax Enforcement Efforts

The sign outside the Internal Revenue Service building is seen. May 4, 2021, in Washington. (AP Photo/Patrick Semansky, File)

Approximately 7,000 IRS probationary workers are facing layoffs this week, a move that experts believe could have significant repercussions on the agency's ability to target high-wealth tax evaders and impact revenue collections. The majority of the affected employees are newly hired workers focused on compliance, including ensuring taxpayer adherence to the tax code and addressing delinquent debts.

The layoffs, one of the largest purges of probationary workers in the government this year, may also lead to challenges in customer service and tax return processing during the upcoming tax season. The union representing Treasury Department employees has raised concerns about the potential negative effects of these layoffs.

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