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IRS fires 6,700 employees during height of tax-filing season
IRS could fire 15,000 employees this coming week

February 16, 2025

UPDATE, Monday, Feb. 24, 2025: The Internal Revenue Service layoffs did happen, but fewer than what might have been. Still, say seven former IRS Commissioners who served during both Democratic and Republican administrations say that the firing of 6,700 agency employees in the middle of tax season is a huge mistake.

IRS building WDC cropped

We’re in the heart of tax filing season. So far, things seem to be going smoothly.

But that could change.

Internal Revenue Service workers processing the millions of already filed returns also are dealing with some additional, but not tax-related, work concerns.

Plus, the tax agency could lose as many as 15,000 workers in the next week or so. That's 15 percent of the IRS’ approximately 100,000 staff.

Dodging DOGE personal mandates: The possible layoffs are just part of the personnel chaos created when Donald J. Trump took office on Jan. 20 and immediately moved to slash the size of the federal government.

On his first day back in the Oval Office, he ordered a government-wide hiring freeze, and rescinded job offers for new employees who were supposed to begin work in late January.

Meanwhile, billionaire Elon Musk’s officially unofficial Department of Government Efficiency (DOGE) quickly initiated buyouts of civil service employees across most of Uncle Sam’s agencies. Those offers are still being sorted out in court, but, according to the Trump administration, about 40,000 federal workers have submitted paperwork to resign and get paid until September.

The IRS, however, occupies a special place, especially this time of year.

Shortly after the DOGE move to trim the federal bureaucracy began, new Treasury Secretary Scott Bessent said IRS personnel essential to the 2025 tax filing season will continue to work until May 15, even if they accepted the offer.

IRS employees staying on the job, according a Bloomberg Tax report, include IRS staff in Taxpayer Services, Information Technology, and the Taxpayer Advocate Service.

However, recent hires in probationary positions are not covered. That means the 15,000 recent hires who are in lower-level IRS positions could be leaving during peak filing season, according to Associated Press and ABC News reports.

IRS statistics still looking good: Will the essential personnel who will remain on the job through mid-May, a month after the April 15 Tax Day deadline, be enough to get through this filing season without incident or taxpayer, and tax professional, frustration?

So far, IRS filing season stats seem to indicate that the filing season has not encountered major problems.

IRS data through Feb. 7 shows it has received almost 23.6 million returns and processed most of them, or just more than 23.5 million. That’s a bit slower than last year at this point in the filing season, but an improvement over the first week’s filings.

The tax agency also has issued more than 8 million refunds so far. The average refund is $2,065. Both those amounts are increases over 2024 tax season at this early stage.

During a regular filing season, that would earn them this weekend’s By the Numbers figure. But this isn't a regular filing season, so that recognition goes to the 15,000 IRS employees who soon could be out of work.

So, if you’ve yet to file, do so when you are able. Be patient.

And keep your fingers crossed that the IRS staff still on the job will be able to get to your Form 1040 — and issue your refund — in a timely manner.

You also might find these items of interest:

 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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