The IRS is planning to cut up to 40% of its workforce after wrapping up this year’s tax filing season.
An internal memo obtained by Federal News Network states the IRS will begin sending out bi-weekly Reduction in Force (RIF) notices starting this week.
By the end of these workforce reduction efforts, the IRS will go from an initial workforce of 102,000 employees to approximately 60,000 and 70,000 employees.
The IRS will conduct the RIF in two phases and will target more severe cuts in specific offices. The memo states “taxpayer services and compliance will need to be trimmed.”
According to the memo, the IRS Taxpayer Experience Office, Transformation Strategy Office, Online Services Office and Office of Civil Rights will experience a “high” level of staffing cuts during the first phase of the RIF.
Those same offices are marked “consolidate” during a second phase of workforce reductions.
The IRS plans to “evaluate impact on operations post-Phase 1,” and will move on with Phase 2 of workforce reductions in August. The memo states IRS career executives will go through an “additional RIF” between Phase 1 and Phase 2.
The memo also states that the agency’s taxpayer services and compliance divisions will go through a “high” level of workforce cuts in the second phase of reductions.
Bloomberg Tax first reported on Tuesday that about 20,000 IRS employees are taking the Treasury Department’s second “deferred resignation” offer.
This is a developing story and will be updated
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