IRS Releases Over 6,000 Employees Ahead of Tax Season

About 6,700 probationary IRS employees, or nearly 7% of the agency's workforce, were let go by the current administration on February 20, 2025, according to multiple sources. Probationary staff in the Chief Counsel's Office will not be impacted as reported by Bloomberg Tax. Being probationary indicates that they were either new to the IRS or had been promoted and/or transferred to a different role.

With more than 3,500 employees discharged within IRS, the Small Business and Self-Employed Unit seems to be the most impacted because of this change. This reduction in workforce aims to conclude the previous Administration’s plan to expand the IRS where it’s focus was to scrutinize the work performed by the small business and self-employed unit, which has since been mostly revoked or suspended and previously funded by the 2022 Inflation Reduction Act.

It has been reported that these workforce terminations were announced internally on February 20, 2025, and went into effect on February 21, 2025. These employee reductions come in addition to recent losses from employees accepting a voluntary termination offer. The IRS workforce reductions are heavily weighted on the enforcement side and will gut IRS efforts to increase audit activity. It is also possible that taxpayer services may be affected by such reductions. These layoffs occurring ahead of tax season are meant to shrink the federal work force as probationary positions were determined as unnecessary for this year’s tax filing season.

Please reach out to our firm if you need legal tax assistance. Until then, we will continue to closely monitor these drastic changes and report on any new information as it becomes available.

To find out more about how Wilson Tax Law Group, APLC, could help you or your business with tax litigation and strengthen your defense strategies, we invite you to set up a  consultation with our firm.

Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense.  Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board.  Wilson Tax Law Group, APLC, is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC.

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Disclaimer: This blog post is for informational purposes only and does not constitute legal, tax or financial advice. Please consult with a qualified attorney, accountant or financial advisor for specific guidance related to your circumstances.