Following his January 20th inauguration, President Donald Trump has made a concerted effort to downsize the executive branch of the federal government. Today, in a move that many have anticipated for weeks, President Trump’s efforts reached the Internal Revenue Service in the form of the termination of over 6,000 employees.
The dismissals cover a broad range of IRS branches, from collections to enforcement and including officers in all 50 states. The related directive was issued by President Trump’s Office of Personnel Management, but appears to be the result of continued cuts recommended by the Department of Government Efficiency (“DOGE”). The cuts may have targeted probationary workers (i.e., workers still in the beginning stages of their employment with the IRS) who were deemed unnecessary for the upcoming tax filing season.
It remains to be seen how the terminations will be carried out, and how they will impact the functionality of the IRS going forward. However, taxpayers can likely expect delays on several fronts, including with respect to ongoing enforcement and collection matters, and possibly in receiving refunds associated with 2024 federal tax returns.
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