The Internal Revenue Service (IRS) in West Palm Beach, Florida, is reportedly planning to lay off up to 20,000 employees, representing about 25% of its workforce. The layoffs began on Friday according to sources familiar with the situation. The initial job cuts are expected to affect the IRS Office of Civil Rights and Compliance, with a 75% reduction in staff, and the remaining employees absorbed into the Office of Chief Counsel. The reorganization will impact fewer than 200 workers in the Office of Civil Rights and Compliance, previously known as the Office of Equity, Diversity, and Inclusion.

The Trump administration's initiative to downsize the federal government, facilitated by Elon Musk's Department of Government Efficiency, includes workforce reductions at the IRS. This has involved agency closures, terminations of probationary employees, and offering buyouts through a deferred resignation program.

A Treasury spokesperson, who wished to remain anonymous, disclosed that the staff reductions are aimed at enhancing operational efficiency at the IRS through process improvements and technological advancements. The administration's strategy involves reversing Biden-era hiring policies and streamlining support functions to better serve the public.

The IRS had already started reducing its workforce in February by notifying around 7,000 probationary employees with less than a year of service about their impending job loss. However, a recent court ruling mandated the reinstatement of these workers. Additionally, IRS employees working on the 2025 tax season were informed in March that they could not accept buyout offers until after the taxpayer filing deadline of April 15.