Special Poll
As tax season reaches its peak, the IRS has begun laying off employees, raising concerns about how it may affect taxpayers. Reports indicate that around 6,000 relatively new IRS employees are losing their jobs as part of a broader effort by the Trump administration to reduce the federal workforce.
The layoffs started Thursday, affecting IRS employees in Denver and other locations. Patricia Allen, president of the National Treasury Employees Union Chapter 32, stated that between 120 and 150 workers in Denver have been let go. Many of those affected are probationary employees from various divisions, including tax collections and compliance. Some received their termination notices early in the morning, while others waited for an email informing them they had just 30 minutes to leave the premises. Kevin Hassett, director of the White House Council of Economic Advisers, commented that there are many IRS employees whose workload is not at full capacity and suggested that future improvements in IRS technology could lead to even more layoffs.
Longtime IRS employees say they have never seen anything like this. “I’ve been with the IRS for 20 years, and I’ve never seen anything like this,” Allen remarked. Doreen Greenwald, the national president of the IRS employee union, warned that the firings could have serious economic consequences. She criticized the timing, pointing out that in the middle of tax season, when taxpayers need efficient service and timely processing of their returns, the administration has chosen to downsize the workforce and send experienced employees to the unemployment line.
Just two weeks ago, IRS employees were informed they would not be able to take the administration’s deferred resignation offer until after tax season, yet now they are being laid off anyway. While it is unclear how these cuts will affect tax return processing, tax experts caution that delays are likely given the ongoing staffing shortages at the IRS.
Adding to the uncertainty, Commerce Secretary Howard Lutnick stated that Trump’s long-term goal is to eliminate the IRS entirely. These layoffs could result in longer wait times, slower tax return processing, and fewer available resources for taxpayers, creating more frustration during an already stressful filing season.