IRS Announces Layoffs of 6,700 Employees Amid Tax Season
Washington D.C., Thursday, 20 February 2025.
The IRS plans to lay off 6,700 probationary employees just as tax season peaks, raising concerns over potential delays in processing returns by the April 2025 deadline.
Immediate Impact on Tax Processing
The Internal Revenue Service’s decision to terminate 6,700 probationary employees [1] comes at a critical time, as the agency expects to process approximately 140 million tax returns this season [3]. The layoffs, scheduled to begin on February 19, 2025 [1], are part of broader cost-cutting measures initiated by the Trump administration through the Department of Government Efficiency (DOGE) [5]. This reduction represents over one-third of probationary IRS employees [1], with affected workers being those who have been in their positions for one to two years [2].
Regional Impact and Processing Centers
The Kansas City processing center will be particularly hard hit, with approximately 1,000 employees facing termination [2]. According to Shannon Ellis, president of the National Treasury Employee Union in Kansas City, 812 of these employees were specifically hired to process tax returns [2]. The impact extends beyond individual workers, as federal jobs account for 2.5% of Kansas City’s total workforce [2], making it one of the most federally dependent cities in the United States after Washington D.C. and San Diego [2].
Anticipated Delays and Processing Times
Tax experts warn of significant processing delays due to these staffing reductions. While the IRS typically processes most refunds in less than three weeks [3], these layoffs could extend processing times considerably. The timing is particularly problematic as the agency is already operating at full capacity, with remaining staff working seven days a week to handle the tax season workload [2]. The situation is further complicated by a hiring freeze imposed by the Trump administration [1], preventing the IRS from replacing terminated employees.
Political Context and Future Implications
The layoffs are part of a larger federal workforce reduction initiative led by President Trump and Elon Musk’s Department of Government Efficiency [5]. While President Trump has indicated that the IRS won’t be eliminated entirely [5], the current restructuring could significantly impact the agency’s ability to meet the April 15, 2025 filing deadline [3]. Democratic lawmakers and former officials have voiced concerns about the potential disruption to taxpayer services [1], though no concrete plans have been announced to address these staffing shortages.