The IRS is set to cut around 20,000 jobs—about a quarter of its entire workforce—as part of a deep reorganization just in time for a busy tax season. This big shake-up, which dates back to initiatives started during Trump’s presidency, has sparked heated debate and left many staff members on edge.
A major target of this overhaul is the IRS Office of Civil Rights and Compliance, once known as the Office of Equity, Diversity, and Inclusion. Almost 75% of the team, which totals fewer than 200 employees, could lose their jobs, with those who remain being shifted over to the Office of Chief Counsel. This move is just one part of a wider strategy aimed at reducing government costs—it also includes closing certain agencies, laying off probationary workers, and setting up a deferred resignation program.
Earlier in the year, a court halted layoffs that affected around 7,000 probationary workers. Now, despite that setback, the IRS is charging ahead with fresh rounds of cuts. These changes, being put in motion under the wing of Elon Musk’s Department of Government Efficiency, come with promises that better technology and more efficient processes will help the IRS serve taxpayers more effectively.
An email from HR sent out last Friday explained the “Reduction in Force” in clear terms: this is all about meeting legal requirements, not a reflection on individual performance. Affected employees have been asked to update their resumes on HRConnect so the agency can re-assess everyone's qualifications during this shift.
Critics warn that slashing so many jobs could undermine tax enforcement and lead to a huge drop in revenue—officials even predict that tax receipts might fall by more than 10% compared to the same period in 2024, which could mean losses exceeding $500 billion. Additional changes include a temporary freeze on moving personnel from April 4, a halt on career relocations, and major shake-ups at the top, with key figures such as the acting commissioner, HR chief, and acting general counsel either resigning or being demoted. There are also reports that about 50 IT and cybersecurity experts have been let go, and an office focused on modernization has been closed down.
Even as the nation gears up for tax season, the IRS warns its employees that more layoffs might be on the way. This aggressive restructuring raises tough questions about how much government spending should be cut—and at what cost to the services and protections everyday Americans rely on.