US IRS prepares to lay off thousands of workers, sources say

The U.S. Internal Revenue Service is preparing to fire thousands of workers in the coming days, a move that could squeeze resources at the tax-collecting agency during the critical tax-filing season, two people familiar with the matter said.

Officials from the Office of Personnel Management, which oversees federal hiring, ordered all agencies on Thursday to dismiss their probationary employees, workers who are newer to their positions and do not enjoy full job protections.

It was unclear how many thousands of employees would be fired at the IRS, whose workforce grew under the administration of former President Joe Biden to reach about 100,000 people, including roughly 16,000 probationary workers. Biden had sought to bolster the agency's operations, including its ability to audit corporations and wealthy taxpayers.

The cuts will target all probationary employees who did not resign under a now-closed buyout program or who have not been identified as essential to get through tax season, which is in full swing ahead of the federal return filing deadline of April 15, one of the people familiar with the matter told Reuters.

The IRS remains busy for months after the deadline, processing returns and delivering refunds to taxpayers.

The IRS layoffs, first reported by the New York Times, come as part of a broader effort by President Donald Trump and Elon Musk's overhaul of the federal government, which they argue is too bloated and inefficient, and ripe with waste and fraud.The IRS did not immediately respond to a request for comment.

The second person familiar with the impending layoffs expressed concerns that the cuts would be made without care to how it might hinder the agency's operations.

"They are trying to reduce numbers across the board with no analysis to the impact it will have on operations," the person said.