The IRS is undergoing significant workforce reductions, with revenue agents making up the largest share of recent job losses, according to a new report from the Treasury Inspector General for Tax Administration (TIGTA). Between January and March 2025, the IRS lost roughly 11% of its workforce, totaling over 11,000 employees through voluntary separations and terminations of probationary workers. 

TIGTA’s May 3 report reveals that 3,623 revenue agents, or 31% of all separations, exited the agency during this period. These losses are especially notable given the IRS’s core mission to enforce tax compliance. By contrast, IT management accounted for just 5% of the total separations. 

Of the 11,443 employees who left, 7,315 were probationary staff issued termination notices, while 4,128 opted into the IRS’s Deferred Resignation Program (DRP). Many terminations remain under legal review following federal court challenges. 

The agency continues to roll out further reduction efforts, including three additional voluntary separation programs: a second iteration of the DRP (TDRP), voluntary separation incentive payments (VSIP) and voluntary early retirement (VERA). As of Apr. 22, 13,124 employees were approved for the TDRP, per TIGTA.

The IRS has also initiated a reduction in force, already impacting units such as Civil Rights and Compliance and Taxpayer Services. Further reductions are expected as the agency follows executive orders to shrink the federal workforce.