The Internal Revenue Service initiated massive IRS layoffs this week, terminating over 6,000 employees nationwide as millions rush to file taxes. The unprecedented tax season staffing cuts – impacting 6-7% of IRS workers – occurred primarily in Texas, Florida, Pennsylvania, and other high-volume regions, raising alarms about processing delays.
Affected departments include critical taxpayer support units:
- Small Business/Self-Employed Division
- Taxpayer Advocate Service teams
- IRS Appeals dispute resolution staff
Laying off 10% of employees mid-filing season is like removing engine parts from a moving train, warned a former IRS commissioner via ABC News.
We can expect slower refunds, endless phone waits, and dropped calls nationwide.
Despite agency claims that no direct filing roles were cut, experts predict ripple effects:
• 3.5-month correspondence response times could double
• $606 billion tax gap likely to grow
• Audit resolution delays for small businesses
The announcement follows 2024 staffing gains from Inflation Reduction Act funding. Union officials distributed termination preparation guidelines, urging impacted workers to secure pay stubs and performance reviews immediately.
With additional layoffs expected post-April 15, the controversy intersects with broader political debates. Commerce Secretary Howard Lutnick recently affirmed Trump administration goals to replace the IRS with an External Revenue Agency focused on tariff collection – a move requiring Congressional approval.