Overview

• The Internal Revenue Service is eliminating 25% of its workforce, approximately 20,000 jobs, as part of President Trump's Workforce Optimization Initiative.
• The agency has closed its Office of Civil Rights and Compliance, laying off 130 employees tasked with protecting taxpayers from discrimination.
• Treasury officials project over $500 billion in lost federal tax revenue by the April 15 filing deadline due to weakened enforcement capabilities.
• The layoffs coincide with the tax filing season, sparking concerns about delays in refunds and diminished customer service for taxpayers.
• Some previously laid-off probationary employees are being reinstated under court orders, though broader operational disruptions persist.