The Westfair Business Journal reported that roughly one-fourth of IRS employees accepted a buyout and intend to resign. This is the largest reduction in the workforce at the IRS in decades, as part the Trump administration’s larger effort to shrink the federal government.
According to two sources who have direct knowledge of this matter, approximately 25% of the Internal Revenue Service’s workforce will leave the agency following the acceptance of buyout offers made under the Trump Administration’s deferred resigning program.
The deadline for the buyout expired Tuesday morning. According to preliminary data, 22,000 of the 90,000 employees have chosen to resign.
CNN reported that a source said, “This is huge.”
As paperwork is processed and data is reviewed, the figures may change.
The second round of buyouts is being offered by the Trump administration. In the first round of buyouts, which was completed in early March, approximately 4,700 employees — or 5% — left the agency. CNN reports that the second round of layoffs will be much larger.
The Trump administration has, in collaboration with Elon Musk’s Department of Government Efficiency (DGE), implemented a number of strategies designed to reduce the number of federal employees. They include buyouts and early retirement incentives. Job offers were withdrawn, as well as terminations of probationary employees.
CNN reported that IRS officials were hoping to reduce staff by 20%.
Former IRS leaders and tax policy experts have warned that staff reductions may negatively affect the agency’s capacity to collect revenue and assist taxpayers.
An IRS employee in Atlanta describes the worsening morale within the agency.
“I’m hearing a lot of people accepted the deferred resignation,” the employee said. “The workplace is toxic these days. Morale is low. People try to come in and think positively, but they don’t make it through a full workday without negativity, even in conversation with other employees, or getting the next email in their inbox with bad news.”
CNN reports that in addition to buyouts and involuntary layoffs, the IRS will announce “reductions in force” (RIF) agency-wide by the end this week. Some of these layoffs may not be necessary due to the volume of resignations.
An IRS employee from New York stated, “I’m riding on the wave and taking my chance with the RIF.” “I won’t accept a resignation.”
Trump’s aggressive effort to reshape federal bureaucracy is part of a larger ideological position that favors limited government and greater privatization. The IRS cuts are one of the largest reductions in federal staffing in recent history.