Despite previous assurances that buyouts and layoffs would not take effect until after tax season, the IRS is reportedly preparing to lay off thousands of first-year probationary employees, according to reports by the Associated Press and ABC News.

These cuts come as part of the Trump administration’s broader federal workforce reduction efforts, which have already resulted in significant staffing changes across multiple agencies. 

The expected layoffs follow the abrupt termination of the administration’s “deferred resignation” program, which initially allowed employees to exit while continuing to receive pay through September. Approximately 75,000 federal employees had accepted the buyout before the program was scrapped. Now, IRS employees who were expecting a phased departure are being told they must continue working through tax season. 

Kelly Reyes, executive director of the Professional Managers Association, criticized the decision in an interview with Accounting Today, warning that mass layoffs during the height of tax season could severely disrupt taxpayer services. The IRS has made notable improvements in customer service over the past two years, thanks in part to additional funding from the Inflation Reduction Act. Reyes cautioned that staffing cuts could undo much of that progress and create backlogs that would ultimately cost more to resolve. 

The AICPA also raised concerns in a statement released on Feb. 16 about potential service disruptions. “For many years, one of the top priorities at the AICPA has been to promote efforts that ensure the IRS has the appropriate resources to meet the needs of taxpayers and preparers,” underscored Mark Koziel, CEO of AICPA. “Many are concerned with potential challenges that could arise from recent changes throughout government. The AICPA is actively monitoring the situation and engaging with IRS leadership and other key stakeholders to understand and mitigate the impact of these changes on IRS services.”

A group of Senate Democrats, led by Ron Wyden and Chuck Schumer, has urged the administration to halt the hiring freeze and avoid further layoffs, warning that staff reductions could delay refunds and compromise enforcement efforts. With IRS funding set to expire on March 14, uncertainty looms over the agency’s ability to navigate the rest of the tax season effectively, Accounting Today reported.