The Internal Revenue Service (IRS) is reportedly preparing to terminate the employment of thousands of probationary staff, according to two sources who spoke with the Associated Press. These anticipated layoffs, which may commence as soon as next week, follow a recent meeting between a representative from Elon Musk’s Department of Government Efficiency (DOGE) team and senior officials at the agency.
While the exact number of employees impacted by these layoffs remains uncertain, the reductions are expected to be substantial. Former President Trump has consistently pledged to significantly decrease the agency’s workforce and to recover some of the $80 million in additional funding that was secured by Democrats in 2023.
Republican legislators have been actively seeking to reverse the expansion of the IRS that was initiated by then-President Biden in 2022. Democrats successfully obtained an additional $80 million in funding for the agency, which also resulted in the hiring of approximately 80,000 new employees. Republicans have opposed this expansion and have already taken steps to retract some of the agency’s extra funding.
In an email sent to senior executives, it was communicated that the General Services Administration (GSA), which oversees the majority of government contracts, has instructed the IRS to evaluate all contracts under its jurisdiction to ascertain their continued necessity. The GSA possesses the authority to classify a contract as non-essential if it “merely generates a report, research, coaching, or an artifact,” as stated in the email.
The email further indicated that, in alignment with the objectives and directives of the Trump administration to eliminate waste, curtail spending, and enhance efficiency, the GSA has initiated a government-wide effort to abolish non-essential consulting contracts.
House Ways and Means Committee Chair Jason Smith (R-MO) has advocated for a comprehensive reform of the tax agency, citing previous instances of its misuse against conservative individuals. Smith recently addressed a letter to acting IRS Commissioner Douglas O’Donnell, urging for sustained oversight of the agency to facilitate efforts in “rebuilding trust” with the American public following “lawless and politically motivated actions.”
“The narrative surrounding the IRS over the past two years reflects both failure and the blatant weaponization of the agency, largely influenced by the Democrats’ choice to focus on hiring 87,000 new IRS agents for auditing working families instead of enhancing essential customer services,” the congressman stated in an interview with Fox News. “There are numerous documented issues at the IRS that are too extensive to enumerate.”