A tearful IRS executive announced Thursday that about 6,000 employees will be laid off — roughly 6% of the agency’s workforce — during the busy tax-filing season. The cuts are part of President Donald Trump’s sweeping effort to shrink the federal government, led by tech billionaire Elon Musk, Trump’s largest campaign donor.
On stage at the Conservative Political Action Conference, Musk dramatically accepted a chainsaw from Argentine President Javier Milei, calling it a symbol of “cutting bureaucracy.”
Labor unions have sued to stop the mass firings, but a federal judge in Washington ruled they can proceed. Christy Armstrong, the IRS’s director of talent acquisition, became emotional during a call with staff, urging them to support each other.
The layoffs, expected to reach 6,700, target employees hired under Democratic President Joe Biden’s push to expand IRS enforcement on wealthy taxpayers. Republicans argued the expansion would harass ordinary Americans. The IRS workforce had grown from 80,000 in 2021 to about 100,000 today.
Independent analysts projected Biden’s IRS expansion would boost revenue and help cut budget deficits. Tax law professor Philip Hackney called the cuts a “travesty,” warning they shift focus away from wealthy tax evaders.
The layoffs affect revenue agents, customer service reps, appeals specialists, and IT staff across all 50 states. The IRS, mindful of the ongoing tax season, will retain critical workers to process over 140 million returns by April 15.
Trump’s broader layoffs target newer federal employees with fewer job protections. His administration is also planning to dissolve U.S. Postal Service leadership and merge it into the Commerce Department.
Amidst these sweeping cuts, many federal workers anxiously await dismissal emails, unsure of what comes next.
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