The Internal Revenue Service (IRS) is set to lay off thousands of probationary workers amid the 2025 tax season's peak. This move could take effect as early as next week, affecting the workforce that the IRS relies on for processing more than 140 million tax returns by the April 15 deadline. The IRS employees involved in this tax season have been informed that they cannot accept a buyout offer from the Trump administration until after the taxpayer filing deadline.
A recent letter to IRS employees clarified that those wishing to accept the buyout must wait until after April 15. The buyout offer, part of an initiative by the previous administration to reduce federal workforce size, targets nearly all probationary employees lacking civil service protection. Despite the program's February 6 deadline, employees who accept the buyout can continue receiving paychecks until September 30.
The official start date of the 2025 tax season was January 27. This period is critical as taxpayers rush to file returns and the IRS endeavors to maintain smooth operations. Meanwhile, the Biden administration has invested $80 billion into the IRS through the Inflation Reduction Act. This substantial funding aims to bolster customer service, enforcement, and technological advancements. However, Republicans have successfully managed to claw back portions of this investment.
Further complicating matters, billionaire Elon Musk and his Department of Government Efficiency (DOGE) have sparked controversy by advocating for the removal of entire federal agencies. Musk's actions at DOGE have prompted a lawsuit filed in federal court in Washington. The suit challenges the IRS's authority to access sensitive government data, asserting that such actions require a Senate-confirmed official.
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