The Internal Revenue Service is preparing to lay off thousands of employees as soon as next week, according to three people familiar with the matter, as the Trump administration pushes to dramatically shrink the size of the federal work force.
The Office of Personnel Management, the federal government’s human resources department, ordered agencies across the government this week to terminate probationary employees, who are relatively new to their positions and do not enjoy as much job protection. It was unclear on Friday exactly how many I.R.S. employees would be affected by the order.
An I.R.S. spokeswoman did not immediately respond to a request for comment nor did a spokesman for the Treasury Department.
A sudden drop in the number of employees at the I.R.S. could interfere with the agency’s work to process millions of Americans’ tax returns. Treasury Secretary Scott Bessent said in an interview with Bloomberg News last week that the department, which oversees the I.R.S., would limit changes until after tax season ends in the spring.
“So I don’t imagine anything’s going to go on at the I.R.S. until then or beyond,” he said. “We’re in the middle of the tax-filing season right now.”
The I.R.S. has dramatically grown its work force in recent years, reaching roughly 100,000 employees, after the Biden administration pushed to revitalize the beleaguered agency. Republicans have long attacked the additional I.R.S. personnel as villains who harass middle-class taxpayers, with President Trump targeting the agency for an extended hiring freeze and pushing to repurpose some of its agents to help with immigration enforcement.
Elon Musk’s team of young software engineers and cost-cutters have also taken an interest in the agency. A member of the so-called Department of Government Efficiency, Gavin Kliger, arrived at the I.R.S. headquarters on Thursday, according to people familiar with the matter.
