Reports Suggest Agency Could Be Slashed in Half [WATCH]

The Internal Revenue Service (IRS) is reportedly considering reducing its workforce by half, cutting approximately 45,000 employees as part of a broader effort to streamline government operations and reduce spending.

Multiple reports on Tuesday indicated that the potential layoffs are being discussed internally.

The move aligns with the ongoing efforts of the Department of Government Efficiency (DOGE), led by Elon Musk, which has been tasked with cutting unnecessary government spending and improving agency accountability.

Elon Musk Called This Financial News ‘Terrifying’

The overarching goal of DOGE is to reduce the national deficit by $1 trillion, an initiative that has already resulted in mass layoffs at various federal agencies.

When asked about the reports, a source confirmed to AFP that discussions regarding a significant workforce reduction at the IRS are taking place. However, no official timeline has been announced.

Currently, the IRS employs approximately 90,000 workers across the country, according to the latest agency data.

BREAKING: “AP Is reporting right this minute that the IRS is planning to lay off as much as HALF of it’s 90,000 person workforce….”

Last week The IRS closed closing 120 offices representing 14-20% of offices.

Are you starting to see the end game in sight?… https://t.co/8axzWpJEfB pic.twitter.com/MC0tm12kak

— NewsTreason Channel 17 (@NewsTreason) March 4, 2025

Last month, the agency laid off around 7,000 probationary employees with one year or less of service.

These layoffs came amid similar reductions at other federal agencies under the Trump administration’s efforts to scale back bureaucracy.

In addition to the layoffs, the IRS is reportedly offering employees voluntary buyouts under what has been described as a “deferred resignation program.”

This option is being made available to nearly all federal employees as part of a government-wide initiative.

While buyouts are being offered to many IRS employees, those involved in processing tax returns for the 2025 filing season have been informed that they will not be eligible to accept any buyout offers until mid-May, following the tax deadline.

This decision ensures that the IRS maintains the necessary staffing levels to handle taxpayer filings during the peak season.

In addition to staff reductions, the Trump administration is reportedly considering a plan to reassign some IRS employees to assist with immigration enforcement.

According to a White House memo distributed to federal agencies in late February, agencies have until March 13 to submit reports outlining their reduction-in-force plans.

It remains unclear whether the White House will approve the full scope of the IRS workforce reduction or how quickly it would be implemented.

If enacted, the reorganization would mark one of the most significant cuts to the agency in decades.

The IRS restructuring is part of a broader effort to reshape the federal workforce, increase efficiency, and reduce the budget deficit.

Are you ready to kiss the IRS goodbye?

Our Secretary of Commerce @howardlutnick sure is!

“Remember, we pay taxes into the Internal Revenue Service. Wouldn’t it be amazing to stop paying taxes to the IRS and have the External Revenue Service?! Make America Great Again! That’s… pic.twitter.com/nCSMYQM70u

— TheStormHasArrived (@TheStormRedux) March 5, 2025

As discussions continue, agency employees await further guidance on the potential impact of the planned reductions.

The opinions expressed by contributors and/or content partners are their own and do not necessarily reflect the views of LifeZette. Contact us for guidelines on submitting your own commentary.