On February 20, 2025, the IRS announced plans to lay off approximately 7,000 workers as part of federal workforce reduction strategies by the Trump administration. The layoffs primarily impact probationary employees, especially those in compliance roles responsible for ensuring taxpayer adherence to tax obligations. This move raises concerns about potential impacts on tax collection services, particularly as the IRS had been focusing on high-wealth tax evaders. In total, the IRS employs about 90,000 people, with diverse representation, and the layoffs coincide with a broader push by the administration to reduce federal employment.
The layoffs affect probationary employees, particularly in compliance departments, as part of the Trump administration's efforts to shrink the federal workforce.
The IRS, tasked with targeting high-wealth tax evaders, faces uncertainty in its ability to continue effective tax collection with reduced staff.
Collection
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