Overview

• The Trump administration is reportedly considering cutting the IRS workforce by 50%, reducing its staff to levels not seen since the 1950s.
• Tax experts and former IRS officials warn that such cuts could cripple the agency’s ability to process tax returns, issue refunds, and enforce tax compliance effectively.
• Democratic lawmakers, including Senator Elizabeth Warren, have written a letter denouncing the proposed cuts, citing potential delays in refunds and weakened audits of wealthy taxpayers.
• Over 7,000 probationary IRS employees were already laid off in February as part of broader federal workforce reductions spearheaded by the Department of Government Efficiency (DOGE), led by Elon Musk.
• Seven former IRS commissioners have publicly criticized the cuts, likening them to a private company firing its accounts receivable staff, and warning of significant disruptions to government revenue collection.