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IRS Set to Lay Off Thousands of Employees Amid Tax Season Challenges

share-iconPublished: Sunday, February 16 share-iconUpdated: Sunday, February 16 comment-icon3 weeks ago 17 views
IRS Set to Lay Off Thousands of Employees Amid Tax Season Challenges

Credited from: LATIMES

Key points:

  • The IRS will lay off thousands of probationary workers during the ongoing tax season.
  • This decision aligns with the Trump administration's broader initiative to reduce the federal workforce.
  • As the IRS anticipates over 140 million tax returns, concerns arise over the impact on operations.

The IRS is poised to lay off thousands of probationary workers in the midst of the tax season, with potential cuts expected as early as next week. This move is part of the Trump administration's intensified efforts to downsize the federal workforce by mandating layoffs of probationary employees who have yet to achieve civil service protection, as highlighted by sources from LATimes. The exact number of affected IRS workers remains uncertain.

Previously, the administration had rolled out a "deferred resignation program" aimed at offering buyouts to many federal employees, allowing those who accepted to cease work while still collecting paychecks until September 30. However, IRS personnel engaged in the ongoing 2025 tax season were informed that they would not be eligible for this buyout until after the filing deadline, which poses challenges, particularly as the IRS prepares for over 140 million expected tax returns by the April 15 deadline.

In a significant financial context, the Biden administration had invested approximately $80 billion into the IRS through the Inflation Reduction Act, aimed at bolstering efficiency with thousands of new hires and upgraded technology for customer service and enforcement initiatives. Nonetheless, recent actions by Republicans have successfully stripped back on this funding, forcefully advocating for drastic reductions in government operations. Figures like Elon Musk have also called for the elimination of entire federal agencies in their quest for substantial federal spending cuts.

As the situation unfolds, attorneys general from 14 states have initiated a lawsuit against Musk's Department of Government Efficiency, arguing for constraints on its power to manage sensitive government data, stressing that only a Senate-confirmed official can wield such authority.

For ongoing coverage, more details can be found in the original articles on HuffPost, LATimes, and VOA News.

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