IRS Faces Workforce Cuts and Leadership Turmoil During Tax Season

Mass layoffs and leadership changes at the IRS, driven by the Trump administration's cost-cutting measures, threaten to disrupt tax refund processing and taxpayer services.

The IRS plans to cut nearly 20% of its workforce, approximately 18,000 employees, by mid-May, just after Tax Day, raising concerns about delays in processing tax refunds.
The layoffs are part of broader cost-cutting measures led by the Department of Government Efficiency (DOGE), directed by Elon Musk, and have sparked legal challenges and criticism from unions and lawmakers.
A federal judge has ordered the reinstatement of thousands of probationary employees terminated by the Trump administration, though the administration is appealing the decision.
The IRS is experiencing high-profile leadership turnover, including the recent removal of its acting Chief Counsel, reportedly due to disputes over protecting taxpayer data from DOGE's demands.
Tax experts warn that reduced staffing could lead to longer wait times for customer service, delayed refunds, and a potential decline in tax compliance due to diminished enforcement capacity.