In February 2025, under the guidance of the newly established Department of Government Efficiency (DOGE), the Trump Administration implemented significant job reductions within the IRS as part of a broader initiative to decrease federal expenditures. Currently, there’s speculation that these dismissed employees might be reinstated as early as tomorrow. The cutbacks didn’t stop at the IRS; they extended to other federal workers and involved reductions in funding for various federal initiatives, including, most notably, USAID.
Massive Cuts at the IRS Impact 6,700 Workers
As initially reported by The Washington Post and covered by The Associated Press, the IRS is set to decrease its staff by 25%. This major staffing reduction started in February of this year with the dismissal of 6,700 employees on probation, who had been with the agency for a year or less. Additionally, the IRS Office of Civil Rights and Compliance will see a 75% cut in its staff, with the remaining 25% being integrated into the Office of Chief Counsel.
This drastic reduction has sparked widespread criticism as the IRS navigates the critical tax season with a significantly diminished workforce. Despite the backlash, DOGE maintains that these cuts are necessary for the federal government to minimize superfluous expenses and enhance the efficiency of federal operations.
Are the Dismissed IRS Employees Returning Tomorrow?
A recent discussion on Reddit suggests that the 6,700 employees laid off in February are slated to resume work on April 14. This information, originating from an email dated April 2, was highlighted in a report by CPA Practice Advisor. The email indicated that these employees are being recalled to work following recent judicial directives.
Further Reductions Expected by May in the IRS Workforce
Despite the rehiring, Bloomberg News reports that an additional 18% of the IRS workforce is expected to be cut by May 15, after the tax season ends on April 15. This includes the employees who are currently being reinstated. Many worry about the possibility of being laid off again after the tax deadline. This follows a directive from the Trump Administration requiring all federal agencies to prepare for substantial workforce reductions by March 13 of this year.
Following the court’s decision to reinstate the probationary employees, many received notifications that they had been reinstated but would remain on paid administrative leave until they could officially return to work tomorrow. This situation has raised concerns about the Administration’s transparency and its communication practices going forward.
Criticism of Musk’s Dual Role in Government
The extensive layoffs and the ambiguous status of the reinstated employees’ positions have drawn criticism towards Musk and DOGE. Musk’s involvement as a non-federal individual in federal operations has been controversial, raising issues about the influence of corporate interests on government decisions. His dual role as both a business magnate and a significant figure in government initiatives highlights the potential conflicts between public and private interests, thereby raising concerns about public trust and the integrity of governmental decisions.
Nonetheless, some defend the creation of DOGE, arguing that it is essential for curbing excessive government spending. DOGE aims to save $2 trillion in federal expenditures. If successful, plans discussed by President Trump and Musk include redistributing 20% of these savings, approximately $5,000 per citizen, in the form of stimulus checks nationwide.
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Calvin Baxter is an economic analyst specializing in the evolving US labor market. He leverages real data to provide you with concrete recommendations and help you adjust your professional strategies.