The Internal Revenue Service (IRS) is set to lay off 6,700 employees this week as part of President Donald Trump's push to reduce the federal workforce, according to internal agency communications obtained by multiple news organizations. The cuts come as the IRS prepares for the busiest weeks of tax season, with the April 15 deadline approaching for most U.S. taxpayers.
The layoffs, scheduled to take effect Thursday, primarily target probationary employees, or those employed for less than a year. More than 3,500 employees from the Small Business/Self-Employed Division (SBSE) will be among those affected, according to an internal email obtained by CBS News. The Large Business & International Division (LB&I) is also expected to see reductions, though the exact number has not been disclosed.
An internal email reviewed by CBS News states that managers were instructed to notify affected employees and oversee the return of government-issued equipment. The directive follows a broader workforce reduction effort led by the Department of Government Efficiency (DOGE) under Elon Musk, which has been overseeing agency-wide staffing cuts since January.
The Trump administration previously issued an executive order mandating a 90-day hiring freeze, which has been extended indefinitely for certain agencies, including the IRS. Employees impacted by the layoffs were given the option to participate in a "deferred resignation" buyout program, which allowed them to resign and remain on administrative leave with full pay and benefits until September 30. The White House has stated that 75,000 federal employees opted into the program, though legal challenges have been filed against it.
The layoffs come at a critical time for the IRS, which typically hires thousands of seasonal employees to assist with processing tax returns. The agency has not stated whether these reductions will impact tax return processing times, but previous reports have indicated that the IRS was already operating with limited staff.
Managers in the IRS Large Business & International Division received instructions to report to offices on Thursday and Friday to assist with offboarding activities, according to emails obtained by CBS News. The IRS has also provided supervisors with instructions on securing government-issued equipment from departing employees.
The Small Business/Self-Employed Division, which serves over 57 million small business owners and entrepreneurs, will be particularly affected by the layoffs. This division oversees tax compliance and debt resolution for businesses with assets under $10 million.
IRS managers have been informed that these layoffs are part of a broader government workforce reduction plan. The administration has not provided a timeline for when hiring might resume but has stated that future hiring decisions will be made based on national interest.
The IRS, the White House, and the Office of Personnel Management have not issued formal statements regarding the layoffs. However, an IRS email reviewed by CBS News acknowledged that the cuts were made in response to an executive order directing agencies to reduce probationary employees.
