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		<title>IRS layoffs underway around the country as millions prepare to file taxes</title>
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		<pubDate>Thu, 20 Feb 2025 22:10:08 +0000</pubDate>
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					<description><![CDATA[The Internal Revenue Service on Thursday began laying off more than 6,000 new and newly promoted employees across the country, sources familiar with the planning told ABC News, as part of President Donald Trump&#8217;s campaign to shrink the federal workforce that could have potential consequences for the current tax filing season. The layoffs, impacting roughly [&#8230;]]]></description>
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<p class="EkqkG IGXmU nlgHS yuUao MvWXB TjIXL aGjvy ebVHC ">The Internal Revenue Service on Thursday began laying off more than 6,000 new and newly promoted employees across the country, sources familiar with the planning told ABC News, as part of President Donald Trump&#8217;s campaign to <a class="zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE " data-testid="prism-linkbase" href="https://abcnews.go.com/US/doge-claims-55-billion-government-cuts-figure-hard/story?id=118966190" target="_blank">shrink the federal workforce</a> that could have potential consequences for the current tax filing season.</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">The layoffs, impacting roughly 6%-7% of the agency&#8217;s 100,000-person workforce, began midday Thursday primarily outside the Washington, D.C., area, with thousands of employees facing layoffs at offices in Texas, Florida, Pennsylvania, Georgia, Tennessee, New York, and beyond, sources told ABC News.</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">As of Thursday morning, over 500 terminations were expected in Texas; over 600 in New York; over 400 in Georgia; and over 300 in each Florida, Tennessee, and Philadelphia, one source said.</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">Layoffs could continue into Friday at some IRS offices around the country if weather conditions prevent managers and employees from getting to work, according to an email sent to managers of probationary employees and obtained by ABC News.</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">The layoffs arrive in the middle of <a class="zZygg UbGlr iFzkS qdXbA WCDhQ DbOXS tqUtK GpWVU iJYzE " data-testid="prism-linkbase" href="https://abcnews.go.com/Business/tax-filing-season-kicks-off/story?id=118080848" target="_blank">tax season</a> as millions of Americans are filing their returns and hoping for timely refunds &#8212; but the exact impact on filing season is not yet clear.</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">Teams within the IRS being impacted by the layoffs include members of the small business/self-employed unit and clerks in various units, sources told ABC News.</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">Also impacted are members of the appeals team, whose role is to &#8220;resolve disputes, without litigation&#8221; with taxpayers, according to the IRS website, as well as employees with the Taxpayer Advocate Service, an independent organization within the IRS that helps to &#8220;protect taxpayer rights&#8221; and advocate for taxpayers who have issues with the IRS or are experiencing financial hardship.</p>
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<p><span class="hsDdd OOSI GpQCA lZur VlFaz " data-testid="prism-truncate"><span><span class="gtOSm FbbUW tUtYa vOCwz EQwFq yCufu eEak Qmvg nyTIa SRXVc vzLa jgBfc WXDas CiUCW kqbG zrdEG txGfn ygKVe BbezD UOtxr CVfpq xijV soGRS XgdC sEIlf daWqJ ">A sign stands outside the U.S. Internal Revenue Service (IRS) building in Washington, D.C., Feb. 20, 2025.</span></span></span></p>
<p><span class="gtOSm FbbUW tUtYa vOCwz EQwFq yCufu eEak Qmvg nyTIa SRXVc vzLa jgBfc WXDas CiUCW kqbG zrdEG txGfn ygKVe BbezD UOtxr CVfpq xijV soGRS XgdC sEIlf daWqJ YNujN JGtjI aZFDu rkKLh ">Kent Nishimura/Reuters</span></p>
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<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">Ahead of the layoffs, the IRS combed through an initial list of approximately 15,000 probationary employees to try to ensure that no one being laid off this week plays a &#8220;direct&#8221; role in filing season, sources said. But there are still widespread concerns within the IRS that the firings could ultimately cause delays.</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">One former IRS commissioner told ABC News it&#8217;s &#8220;unrealistic&#8221; to think firings could occur during filing season and that the process would still run entirely smoothly.</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">&#8220;The bottom line: Forever, it has been an absolute rule of thumb that you keep things stable during filing season. Because it&#8217;s delicate,&#8221; the former commissioner said. &#8220;And the idea that nearly 10% of the entire IRS workforce is being laid off right in the middle of filing season is extremely risky.&#8221;</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">The former commissioner said filing season is like an assembly line with incoming and outgoing products: There are incoming tax forms and correspondence, and outgoing credits, refunds, and balance-due notices.</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">&#8220;There are layers of indirect support that go into that &#8212; that could be technology, other types of logistics, supply chains. If you lose that capacity, it will diminish productivity,&#8221; the former commissioner said. &#8220;Filing season is all hands on deck. Something could break down. You could need to surge resources to one area of service. Things don&#8217;t always go as planned at the assembly line.&#8221;</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">&#8220;We can expect Americans to experience a return to slower refunds, to longer waits on hold, to dropped calls,&#8221; Vanessa Williamson, senior fellow at the Tax Policy Center, said on a call with reporters Thursday. &#8220;It&#8217;s going to be a real impact on customer service right as taxes are due this year.&#8221;</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">One probationary worker expecting to be fired told ABC News that &#8220;termination of probationary employees could prolong audits.&#8221;</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">Another agency official said morale at the IRS is &#8220;low&#8221; and that they expected remaining workers to &#8220;protest internally in ways that could impact filing season.&#8221;</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">On Thursday morning, a union representing IRS employees distributed a letter to members with instructions on what to do if they receive a termination letter.</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">&#8220;Print out everything in your Employee Personnel File that verifies when you started your job,&#8221; the email said. &#8220;Print last three paystubs and W-2. Print your annual appraisal. Keep your printed copies at home.&#8221;</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">An IRS spokesperson did not respond to a request for comment from ABC News</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">Cuts to the IRS workforce could also impact the agency&#8217;s ability to close the tax gap &#8212; hundreds of billions of dollars in unpaid taxes that the government is owed but go uncollected because of lax enforcement.</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">The IRS projects that the gross tax gap in 2022, the most recent year data is available, was $606 billion.</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">Sources told ABC News that they expect further IRS layoffs after tax season, and senior Trump administration officials have said that Trump wants to dismantle the tax-collecting agency entirely, which would require congressional approval.</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">&#8220;His goal is to abolish the Internal Revenue Service and let all the outsiders pay,&#8221; Commerce Secretary Howard Lutnick said on Fox News Wednesday night, referencing Trump&#8217;s proposal to create an &#8220;External Revenue Agency&#8221; to collect tariffs on foreign imports.</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">Experts say that abolishing the IRS would be extraordinarily difficult, and that it&#8217;s the sole government agency that collects the taxpayer money Trump is using to pay for his priorities, including border enforcement.</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">The IRS also would have to oversee any repayments to taxpayers envisioned by Trump and DOGE head Elon Musk, who recently floated the idea that Americans should receive a percentage of the savings generated from the widespread government cuts.</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">&#8220;I love it. A 20% dividend, so to speak, for the money that we&#8217;re saving by going after the waste, fraud and abuse and all of the other things that are happening,&#8221; Trump said this week. &#8220;I think it&#8217;s a great idea.&#8221;</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">The IRS cuts come two years after the agency received tens of billions of dollars in funding from the 2022 Inflation Reduction Act, which the IRS said helped it hire more customer service representatives &#8212; thereby cutting in half the average time needed to process taxpayer correspondence from 7 months to 3.5 months.</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy ">At the end of fiscal year 2024, the IRS employed a total of 100,433 people &#8212; including accountants, managers, lawyers and other staff &#8212; which was up from about 90,000 the year before.</p>
<p class="EkqkG IGXmU nlgHS yuUao lqtkC eTIW sUzSN "><em class=" ">ABC News&#8217; Elizabeth Schulze and Devin Dwyer contributed to this report.</em></p>
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