The IRS laid off 6,700 employees Thursday to improve government efficiency, a federal official confirmed to NewsNation. Still in their probationary period, these employees had not yet attained full staff status.
Among those dismissed, over 5,000 were auditors and tax compliance personnel, a significant rollback of enforcement-focused hiring. Kevin Hassett, former White House Council of Economic Advisers chair, emphasized the decision was based on ensuring taxpayer dollars fund only the most effective workforce. “We need productive employees. With over 100,000 tax collection personnel, there’s room for efficiency. The Treasury secretary is reviewing operations, and as IT improves, more reductions may be possible,” he said.
Republicans have long opposed the IRS expansion funded by the Inflation Reduction Act (IRA). After taking control of the House in 2023, they clawed back a portion of the $80 billion boost allocated for enforcement. By freezing $20.2 billion meant for audits, they significantly scaled back Democratic efforts to increase scrutiny on high-income earners and corporations.
Critics argue the layoffs could delay refunds and weaken compliance. However, others see it as a necessary correction, ensuring that government agencies remain accountable and do not overreach. With efficiency at the forefront, the administration’s move signals a shift toward a leaner, more responsible IRS focused on essential taxpayer services.
