About 20,000 to 22,000 Internal Revenue Service employees are expected to leave the tax agency through the Deferred Resignation Program as part of the Trump administration’s efforts to improve government efficiency.
The last day to accept the second round of resignation offers was April 14, just ahead of the April 15 taxpaying deadline, with some workers leaving their jobs as early as April 28. Those who accept the resignation offer will be placed on paid administrative leave through September 30.
Earlier this year, approximately 4,700 IRS employees accepted resignation offers, and another 7,300 probationary employees were placed on administrative leave.
Those who do not accept a resignation offer may be subject to further staffing cuts. Beginning this week, Federal News Network reported that the IRS plans to send out reduction-in-force (RIF) notices biweekly. According to an internal memo, the agency’s goal is to reduce its initial workforce from 102,000 to between 60,000 and 70,000 employees.
This reduction marks a significant reversal of recent hiring initiatives that expanded the IRS under the Biden administration, when more than 22,000 employees were added to the payroll.
“The roll back of wasteful Biden-era hiring surges and consolidation of critical support functions are vital to improve both efficiency and quality of service,” a Treasury spokesperson said, per CBS.
The Trump administration argues these reductions will streamline operations and improve taxpayer services.
However, critics worry about potential negative impacts on the IRS budget and workforce capacity that could result in longer processing times and reduced customer service. The cuts follow a period when the agency had made notable improvements in taxpayer services.
The IRS had recently reported substantial progress in answering more taxpayer calls and opening new assistance centers. Key offices facing significant reductions include the Office of Civil Rights and the Taxpayer Experience Office.
These workforce changes come after the IRS received nearly $80 billion in funding through the Inflation Reduction Act, much of which has since been rescinded. Former IRS Commissioners have criticized the cuts, suggesting they could impair the agency’s functionality.
The reductions may affect revenue collection and compliance efforts.
The Trump administration’s Department of Government Efficiency (DOGE) is overseeing these changes as part of a broader initiative to reduce the federal workforce. The first phase of the IRS RIF layoffs will be evaluated in August, with potential adjustments to follow.