The Trump administration and Office of Personnel Management issued a directive designed to cut “probationary” federal employees. The overarching plan is to shrink the overall federal workforce by letting go of new hires and other “non-critical employees.” With tax season right around the corner, this seems like a very foolish and aggressive decision.
The Internal Revenue Service is expected to lay off over 6,000 employees by the end of February. Interestingly, over half of the employees in line to be terminated are from the same department.
The IRS Small Business/Self-Employed Division is also expected to lose around 3,500 employees. With reports stating that the layoffs are set to happen a couple of weeks before the peak of tax season, this decision is entirely too irresponsible. The layoffs could start after tax season to ensure that there is enough manpower to handle the incoming season.
Additionally, the fact that more than half of the employees getting terminated are from one department is cause for concern, as this department is crucial for the IRS to function.
The Small Business/Self-employed Division serves more than 57 million small businesses and entrepreneurs who have less than $10 million in assets. This division helps make sure that these businesses have access to the resources they need, such as filing and debt resolution.
With a large majority of their workforce gone, it’s more than likely that there will be some delays or shortcomings when these businesses file taxes for this year. It is a big possibility that the department will get backed up and refunds will be sent out later rather than sooner.
Unfortunately, this does look like a trend that could trickle into the 2026 tax season and beyond.
The term “probationary employee” means that the employee is on a one-to-two-year trial period during the beginning of their employment. Since they were recently hired, they were not deemed important enough to leave on staff. From here, this means that the workers who are left on staff would be considered senior-level employees.
About two-thirds of these senior-level employees are eligible for retirement within the next six years. Ultimately, the IRS workforce would be shrinking at an alarming rate with little to no recuperation.
The workforce is already wildly disproportionate, as the IRS has a high attrition rate, meaning that there’s already a slim pick when it comes to permanent reliable employees. Forcing the agency to drop the few remaining that are left just seems completely reckless. Who’s going to stay and make sure that everything gets done?
With that said, it’s worth noting that the employees who are getting laid off are being redirected toward nationwide tax agencies in hopes that they will find employment elsewhere.
While that is a sweet gesture, it doesn’t seem like it will help much. It’s clear that President Donald Trump’s priorities are elsewhere as he attempts to reform different aspects of the U.S. government. It’s a truly reckless decision to make, as millions of Americans begin to file or have filed already. Hopefully, the Trump administration has a plan to ensure that this tax season runs smoothly and that everyone gets the money that they are entitled to.
