IRS Workforce Faces Significant Reduction Amid Deferred Resignation Offer
April 15, 2025 | By Smart Money Mindset Staff
As the tax filing deadline approaches, a substantial number of Internal Revenue Service (IRS) employees are considering a new deferred resignation offer from the Trump administration. According to sources familiar with the situation, approximately 20,000 IRS workers have expressed interest in the initiative, which could lead to a significant contraction of the agency’s workforce.
Potential Workforce Reduction
If all 20,000 employees opt for the buyout, the IRS would see its workforce reduced by roughly 20%, dropping from its recent total of more than 102,000 employees. Such a reduction comes amid ongoing discussions about the efficiency and effectiveness of federal agencies, especially concerning tax collection and customer service.
Impact on the IRS
Reports indicate that the IRS plans to cut as much as 40% of its workforce as part of broader reduction-in-force efforts. The Federal News Network cited internal documents detailing these plans, highlighting the looming exodus coinciding with the critical tax deadline.
Since the beginning of 2025, approximately 12,000 IRS employees and probationary staff have either resigned or been laid off. The specifics regarding the timeline for the deferred resignation process remain unclear, leaving many questions unanswered for those employees considering this significant career move.
Treasury Department’s Statement
A spokesperson for the Treasury Department, which oversees the IRS, noted that the current level of voluntary departures under President Trump is comparable to the hiring influx seen under former President Biden. The spokesperson emphasized that the reshaping of the workforce reflects an effort to improve operational efficiency while maintaining essential services such as collections, privacy, and customer service for taxpayers.
"The rollback of excessive hiring from the Biden era and the consolidation of key support functions are vital to improving both efficiency and quality of service," the spokesperson stated.
Historical Context and Future Implications
This move is part of a broader trend initiated shortly after Trump took office, when his administration issued buyout offers across various government sectors with the intent of quickly shrinking the federal workforce. At that time, the expectation was that roughly 10% of eligible employees would take advantage of these offers.
The IRS exodus represents a critical juncture for the agency, which is tasked with essential functions affecting millions of American taxpayers. As the situation develops, the implications for tax administration and service delivery remain to be seen.
Conclusion
As the April 15 tax deadline looms, the decision facing thousands of IRS employees regarding the deferred resignation offer presents both challenges and opportunities. With significant implications for the agency’s future direction, the impact of these workforce changes will likely be felt throughout the fiscal year and beyond.
For ongoing updates on the IRS and tax-related issues, stay tuned to Smart Money Mindset.
Share this article:
