According to The New York Times, the IRS may be facing one of the largest workforce reductions in its history, with reports indicating that the Trump administration is planning to cut staff by as much as 50% by the end of the year. This would be achieved through a mix of layoffs, attrition and buyouts.

The agency has already seen a significant drop in personnel, with 6,700 probationary employees laid off in February and thousands more accepting buyouts. However, those deemed essential for tax season have been required to stay through the April 15 filing deadline. 

The anticipated layoffs have raised concerns about the IRS’s ability to maintain taxpayer services, process returns efficiently, and conduct audits effectively. Many tax professionals have expressed concerns over the potential impact, warning of increased delays, reduced customer service and diminished oversight of tax compliance.

Former IRS commissioners have also voiced their opposition, cautioning that drastic cuts to the agency could harm compliant taxpayers while benefiting those who evade taxes. 

Additionally, the Trump administration has proposed transferring some IRS personnel to the Department of Homeland Security to support immigration enforcement efforts, further straining the agency’s resources, reports CPA Practice Advisor.

Meanwhile, the IRS remains without a confirmed commissioner, adding to uncertainty about the agency’s direction. Acting Commissioner Melanie Krause is currently leading the IRS, but the Senate has yet to schedule confirmation hearings from Trump’s nominee,  ex-Republican House member from Missouri Billy Long.