IRS Implements 25% Workforce Reduction During Tax Season

The layoffs, including the closure of the Office of Civil Rights and Compliance, come as part of the Trump administration's federal downsizing initiative led by Elon Musk.

The IRS has begun laying off up to 20,000 employees, representing 25% of its workforce, as part of a broader federal workforce reduction plan.
The Office of Civil Rights and Compliance has been eliminated, with 75% of its staff laid off and the remaining employees reassigned to other departments.
The layoffs coincide with the peak of tax filing season, raising concerns over delayed refunds, weakened enforcement, and a projected 10% drop in tax revenue compared to 2024.
Early retirement incentives are being offered as part of the workforce reduction strategy, while 7,000 probationary employees previously laid off in February are expected to return by mid-April under court orders.
The reductions are part of the Trump administration's efforts to streamline the federal government, led by the Department of Government Efficiency under Elon Musk, and include the dismantling of diversity, equity, and inclusion initiatives.