A person acquainted with the Internal Revenue Service’s preparations said that by the end of this week, more than 6,000 employees are scheduled to be let go. According to the text of an email and that an IRS employee shared, more than half of these employees—more than 3,500—are anticipated to come from a single IRS division.
The email, which was distributed to IRS Small Business/Self-Employed Division managers on Wednesday, states that the IRS Human Capital Office will notify the impacted SBSE workers on Thursday.
“While details are still developing, we understand that over 3,500 SB/SE probationary hires will be terminated by the end of this week,” according to the email, which is signed by SBSE deputy commissioner Maha Williams and SBSE commissioner Lia Colbert.
The email claims that the probationary employees who would be let go “were not deemed as critical to filing season.”
The layoffs are anticipated to occur in mid-March to mid-April, a few weeks before the tax filing season reaches its peak activity. The news that 6,000 IRS employees would likely be let off was initially reported by the New York Times.
Even though these numbers only apply to one IRS department, the IRS will be implementing some of the most mass terminations ever recorded at a department or agency. An email was also sent to managers in the IRS Large Business & International Division asking them to visit the office on Thursday and Friday “to support offboarding activities.” The communication did not specify how many employees could be let go.
Tens of thousands of people work for the IRS, which employed 82,990 full-time equivalent positions in 2023. The Inflation Reduction Act increased IRS spending by $80 billion over the following ten years under former President Joe Biden. A 2023 measure passed by Congress revoked a portion of this, $1.4 billion.
The Office of Personnel Management and the Trump administration issued a mandate to reduce probationary employees across federal agencies, which prompted the expected layoffs.
Probationary employees of the federal government are individuals who are still in a trial phase, which usually lasts between one and two years.
Over the weekend, a Department of Government Efficiency IRS employee asked to access an IRS internal data system that contains the personal tax information of individual Americans.
Early in February, Trump signed an executive order directing agency heads to collaborate with DOGE and begin “large scale reductions in force.”
The email sent to SBSE managers on Wednesday also states that they would receive a list of the employees who will be let go later that day. The email asked SBSE managers to stay in the office for the remainder of the week after instructing managers to tell staff to report to work at the end of the week.
The SBSE section provides assistance with debt resolution and ensures small business owners fulfill their tax responsibilities, including filing taxes. According to the IRS website, it assists over 57 million entrepreneurs and small business owners with assets under $10 million.
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According to the email sent to SBSE managers, “IT will be available to help secure equipment. If IT is not available, managers will secure equipment,” Additionally, a FAQ guide and guide will be available “to help guide managers through this difficult process.”
Additionally, on Wednesday, several LB&I staff members received calls and emails inviting them to come into the office later this week. They were instructed to bring any government-issued equipment, such as paper case files and access cards, with them.
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The Trump administration offered federal employees a “deferred resignation” buyout scheme prior to the start of agency-wide cuts to probationary staff last week. Employees who chose to resign and take administrative leave were still eligible for benefits and compensation through September 30.
According to the White House, more than 75,000 workers signed up before the program’s expiration date.
Although the program is being challenged in court, a federal judge in Massachusetts decided in early February that it could go forward. The Office of Personal Management declared the participation deadline had passed within an hour of the decision.
