IRS Set to Terminate Over 6,000 Employees This Week

Washington, D.C. — The Internal Revenue Service (IRS) is expected to lay off more than 6,000 employees by the end of this week, according to sources within the agency. This move comes amid broader government efforts to streamline federal agencies and reduce costs.

According to an email obtained by CBS News, more than half of the anticipated layoffs, around 3,500, will come from the IRS’s Small Business/Self-Employed (SB/SE) Division. The email, sent to SB/SE managers, stated that the affected employees would be notified Thursday by the IRS Human Capital Office.

SB/SE Commissioner Lia Colbert and Deputy Commissioner Maha Williams emphasized in the email, “While details are still developing, we understand that over 3,500 SB/SE probationary hires will be terminated by the end of this week.” The email further noted that these probationary employees were considered “not critical to filing season,” which is expected to peak in mid-March through mid-April.

As the IRS implements these cuts, it marks one of the highest numbers of mass layoffs in a federal agency in recent history. The Large Business and International (LB&I) Division has also instructed managers to support offboarding activities, though specific numbers for layoffs within LB&I were not disclosed.

Currently, the IRS employs a significant number of full-time equivalent positions to manage its operations in 2023. Under the previous administration, the IRS received an $80 billion funding boost to enhance its capabilities, with $1.4 billion recently rescinded by Congress in 2023. The planned layoffs are part of a directive from the former Trump administration aimed at reducing the workforce across federal agencies.

The federal government’s probationary workers, those who have not completed their trial employment periods, are particularly vulnerable during this downsizing effort. In response to the impending layoffs, some IRS employees have expressed concern about job security and the potential impact on the agency’s ability to process tax returns and refunds during a critical season.

The email sent Wednesday indicated that managers would receive lists of affected employees and were instructed to be present at the office for the remainder of the week. Managers were also reminded to assist employees in navigating this challenging transition.

Shannon Ellis, president of the National Treasury Employees Union Chapter 66, remarked on the uncertainty facing many IRS employees: “We don’t know what time these notifications will come, and it could include all of our probationary employees. This creates a sense of dread and fear.” Ellis’s chapter has been providing resources to assist employees in preparing for potential layoffs.

As reports of these layoffs surfaced, protests erupted in several locations, including Ogden, Utah, where nearly 100 individuals gathered to voice their concerns over local IRS job losses. Union officials urged employees to preserve important documentation, such as performance records and personnel files, in case they were impacted by the layoffs.

In light of the current situation, the IRS remains under scrutiny regarding its staffing and operational efficiency, particularly as the agency continues to contend with fluctuating service demands and resources.