More than 22,000 employees at the Internal Revenue Service (IRS) have accepted the Trump administration’s latest buyout offer, according to agency sources. This initiative, known as a deferred resignation program, grants these workers full pay and benefits until September 30, with most being relieved of work duties during their final months.
This voluntary resignation program, similar to one announced in January, allows federal employees to take leave with pay until the end of September. The IRS, which employed around 100,000 workers when President Donald Trump commenced his second term, has already seen a reduction of 7,000 probationary employees earlier this year, with an additional 5,000 departing over the past three months.
Fiscal watchdog organizations have expressed concerns that such a significant loss of staff could impede the IRS’s ability to efficiently process and collect taxes, potentially leading to substantial revenue losses for the U.S. government. The federal government faced a $1.83 trillion deficit last year, pushing the national debt beyond $36.6 trillion.
Chye-Ching Huang, the executive director of the nonpartisan Tax Law Center at New York University, voiced apprehension that these administrative actions could jeopardize taxpayer services and privacy, ultimately costing the federal government hundreds of billions in revenue.
The IRS resignations are part of broader measures involving mass layoffs and buyouts across government agencies spearheaded by both President Trump and Elon Musk’s Department of Government Efficiency (DOGE). Their aim is to significantly reduce federal bureaucracy’s size and cost, citing inefficiency and excessive bloat.
To date, approximately 200,000 workers have exited the 2.3 million-strong civilian federal workforce through previous buyout offers, layoffs, and resignations. Members of Musk’s DOGE team have reportedly been examining the IRS’s tax-collecting databases for weeks, as part of their mission to identify waste and fraud in various government agencies, including the IRS.
Former Democratic President Joe Biden’s administration had previously increased the IRS workforce by 20,000 in an effort to boost tax revenue collection.
The Societal Shift
The extensive reduction in IRS staff could have far-reaching implications for both the agency and taxpayers. With fewer employees to handle tax processing and collection, there may be delays and inefficiencies, potentially impacting the timely receipt of tax refunds and the enforcement of tax laws. This could also affect the accuracy of tax assessments and audits, leading to potential discrepancies that may burden taxpayers with unexpected liabilities.
Moreover, the focus on reducing federal bureaucracy, while potentially streamlining operations, may result in diminished public services. The push for efficiency could prioritize cost-cutting measures over comprehensive service delivery, affecting the quality and accessibility of government-provided resources. As these changes unfold, taxpayers and citizens might need to navigate an evolving landscape of public service provision and financial management.