US: IRS Prepares for Large-Scale Layoffs, 7,000 Employees to be Fired
The U.S. tax collection agency, the Internal Revenue Service (IRS), is preparing for major layoffs, with around 7,000 employees expected to lose their jobs. The IRS currently employs nearly 90,000 workers, 65% of whom are women. In response to the large workforce, the Trump administration has assigned some employees to assist Homeland Security in handling illegal immigration issues.
Government Cost-Cutting Measures Lead to Layoffs
The Trump administration continues efforts to reduce government expenses by downsizing the federal workforce. As part of this initiative, significant layoffs are planned within the IRS. Media reports indicate that 7,000 employees, particularly those in probationary roles, will be affected.
Targeting Compliance Employees
The layoffs will primarily impact probationary employees involved in tax compliance work, ensuring taxpayers adhere to tax codes and file returns. Those employed for a year or less will be the first to be let go. This decision comes following recommendations from the government efficiency department, led by Elon Musk. However, it remains unclear how these layoffs will affect tax collection this year.
IRS Tasked with Increasing Tax Revenue
The layoffs are being planned despite the previous Biden administration’s directive for the IRS to enhance tax collection from wealthy individuals to boost revenue. The U.S. currently holds a national debt of approximately $36 trillion. By the end of 2024, the IRS had successfully collected an additional $1.3 billion in taxes from high-income taxpayers.
IRS Employees Engaged in Immigration Control
In addition to tax collection duties, the Trump administration has redirected some IRS employees to assist Homeland Security with the rising issue of illegal immigration. The U.S. is currently conducting large-scale deportations to address the growing number of undocumented immigrants.
As the IRS prepares for these layoffs, concerns remain regarding their impact on tax enforcement and overall revenue collection.
