Roommates, get into this one! This tax season, the IRS is cutting WAY MORE than refund checks. According to the Associated Press, the Internal Revenue Service will lay off thousands of probationary workers in the middle of the season. Unelected official Elon Musk and his DOGE (Department of Government Efficiency) are partially behind the upcoming layoffs.
Two sources familiar with the agency’s plans revealed this news to AP. The wild part? Cuts could happen as soon as this week.
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Why Is The IRS Laying People Off?
The layoffs are part of the Trump administration’s intensified efforts to shrink the size of the federal workforce. Agencies have been ordered to let go of nearly all probationary employees. This means that the IRS will likely boot anyone who hasn’t yet gained civil service protection. At this time, it’s unclear how many IRS workers will be affected.
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Previously, the administration announced a plan to offer buyouts to almost all federal employees through a “deferred resignation program.” This program was meant to quickly reduce the government workforce. The program deadline was Feb. 6, and administration officials said employees who accepted would be able to stop working while still collecting a paycheck until Sept. 30.
However, Internal Revenue Service employees were not given the buyout option. According to a letter recently sent to the agency’s employees, employees involved in the 2025 tax season will not be allowed to accept a buyout offer from the Trump administration until after the taxpayer filing deadline.
The official start date of the 2025 tax season was Jan. 27. Meanwhile, the IRS expects more than 140 million tax return filings by the April 15 deadline.
Trump & Elon Musk Are Undoing Improvements By The Biden Administration
The Biden administration invested heavily in the IRS through an $80 billion infusion of funds in the Democrats’ Inflation Reduction Act. The act included plans to hire tens of thousands of new employees to help with customer service and enforcement. It also aimed to invest in new technology to update the tax collection agency.
However, Republicans have been successful at clawing back that money. Billionaire Elon Musk and his Department of Government Efficiency have called for the U.S. to “delete entire agencies” from the federal government to radically cut spending and restructure its priorities.
Elected officials are trying to fight against DOGE plans. Attorneys general from 14 states filed a lawsuit on Thursday (February 13) in a Washington D.C. federal court. The suit challenges Elon and DOGE’s authority to access sensitive government data and exercise “virtually unchecked power.”
Additionally, the lawsuit points out that Elon’s actions via DOGE can only be taken by a nominated and Senate-confirmed official. It cites constitutional provisions that delineate the powers of Congress and the president.
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Associated Press reporter Fatima Hussein contributed to this report.
