The federal agency makes a desperate move before Tax Day.
Can this really affect everyone who needs to file a return? The short answer is yes. Over the past two months, the IRS has raised eyebrows by slashing jobs nationwide while still facing the massive task of processing millions of tax returns. Now, with the April 15 filing deadline just around the corner, questions linger about how these cuts might impact everyday taxpayers.
Can you believe the IRS fired 7,000 workers so close to tax season? The answer might surprise you. In February, the agency let go of employees in tax compliance departments who had served for about one year or less. Court decisions in Maryland and California ordered those workers to be rehired, but the Trump administration appealed both rulings. Meanwhile, the IRS began exploring the possibility of halving its workforce of about 90,000, potentially impacting taxpayer support branches by May 15.
Why are thousands of IRS employees unexpectedly returning to work this April 2025?
Could these sudden rehires save tax season from total chaos? They just might. Bloomberg reports that some of the fired employees recently received an email inviting them back on April 14, just one day before the filing deadline. Interestingly, the email states that returning employees do not have to give up any outside work they took on during their furlough, signaling the IRS’s urgent need for extra hands to meet the looming deadline.
Have you heard about the departments most affected by these cuts? Take a quick look at the data below:
| Department | Estimated Staff Reduction |
|---|---|
| Taxpayer Advocate Service | 20% |
| Direct File Department | 30% |
| Civil Rights & Compliance | 75% (absorbed elsewhere) |
These units are critical for helping Americans with tax issues, especially those in financial distress. Yet the IRS insists that reducing staff will help streamline operations in line with new federal mandates.
How will federal government layoffs and rehires reshape tax compliance before the deadline?
Are you worried that this might slow refunds or create processing backlogs? It’s a valid concern. The IRS has received around 89 million returns so far and processed roughly 88 million, based on its latest data. The agency’s decision to bring back some staff on short notice appears to be an attempt to avert a logjam, but many insiders fear more layoffs could occur after April 15.
Could you benefit from using free IRS tools to ensure a smoother filing? Absolutely. Before making a final submission, consider checking the Tax Withholding Estimator on the agency’s website. It’s a quick way to confirm if the withheld amount from your paycheck is accurate.
- Verify your personal and financial details
- Adjust your withholding if needed
- Contact the IRS promptly if you spot errors
Should you be concerned about Trump’s plan to abolish the IRS and fund government through tariffs?
Does that sound like a big shift in how taxes are collected? It definitely is. President Donald Trump, alongside Elon Musk’s Department of Government Efficiency (DOGE), has been ramping up efforts to cut federal programs and staffing. Trump’s vision involves replacing the IRS with an External Revenue Service funded by tariffs on imported goods. While some see this as a bold move to reduce bureaucracy, others worry about higher consumer prices and potential upheaval in tax processes.
Will the IRS also assist in immigration enforcement? Surprisingly, yes. Reports suggest the agency will soon share taxpayer information with Immigration and Customs Enforcement (ICE) to verify addresses of individuals suspected of residing in the U.S. illegally. Critics argue this partnership could deter people from filing returns, while supporters see it as an additional tool to uphold federal law.
Can we expect more major changes in the near future? The situation is evolving daily, but taxpayers should stay informed and file promptly. Keep an eye on official IRS updates, and don’t hesitate to consult a tax professional if you’re uncertain about how these developments may affect you.