IRS sends RIF notices as it begins widespread layoffs

The Internal Revenue Service began issuing layoff notices to employees on Friday in what is expected to be a sweeping reduction of the agency’s more than 90,000 employees. 

IRS’ Office of Civil Rights and Compliance will be the first office to face the cuts, the agency’s human resources office said in an email sent to all staff on Friday. That office is set to lose 75% of its workforce through a reduction in force, and the remaining staff that does not separate by voluntary attrition will be absorbed into the Office of Chief Counsel to carry out its statutory responsibilities. 

IRS made clear the civil rights office was only the first that will be affected by layoffs. 

“The IRS has begun implementing a Reduction in Force (RIF) that will result in staffing cuts across multiple offices and job categories,” the agency said in an email obtained by Government Executive. “This action is being taken to increase the efficiency and effectiveness of the IRS in accordance with agency priorities” and President Trump’s executive orders calling for workforce reductions. 

IRS went on a hiring spree under President Biden after Congress approved an injection of $80 billion through the Inflation Reduction Act, with its workforce surpassing 100,000 employees. Republicans have since clawed some of that money back and Trump has frozen much of the remaining amount. His administration is expected to slash as many as 20,000 jobs from the agency. 

The agency previously fired nearly 7,000 newly hired and promoted employees on their probationary periods, though a court has, for now, ordered them reinstated. IRS last week fired around 50 senior executives in IT, according to two sources familiar with the moves, and has shed additional staff through attrition. On his first day in office, Trump singled out IRS as the lone agency that would have to continue its hiring freeze beyond his first 90 days in office. 

IRS told employees the layoffs will occur in phases, though it did not lay out any additional detail. A spokesman for the agency was unable to provide any additional information. The cuts began as the agency is in its busiest time of the year, with the annual tax filing deadline less than two weeks away. 

“This message is only notification that the IRS has begun the RIF process and does not serve as your official notification,” the agency said in the email. “Each office will receive direct communication when their phase begins.”

Eligible IRS employees will receive early retirement and buyout incentives, with details forthcoming next week. Any reassignments or relocations are currently paused. 

The human capital office directed employees to upload their current resume to an internal portal to “determine qualifications” during the RIFs. 

“We remain committed to sharing information as soon as it becomes available and ensuring all employees have access to resources and support,” the agency said. “Thank you for your continued professionalism and commitment to supporting our mission.”

Danny Werfel, a Biden appointee, stepped down as IRS commissioner in January after Trump named a successor despite Werfel having two more years in his term. Trump tapped former Rep. Billy Long, R-Mo., to lead the agency, though he is still awaiting Senate confirmation. The administration has sought to use IRS data to determine whether undocumented immigrants were accessing certain federal benefits.