Snapshot Report: IRS Workforce Reductions as of May 2025

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Snapshot Report: IRS Workforce Reductions as of May 2025

TREASURY INSPECTOR GENERAL for Tax Administration – Snapshot Report: IRS Workforce Reductions as of May 2025, July 18, 2025. Report Number: 2025-IE-R027. Snapshot Report: IRS Workforce Reductions as of May 2025 – 

“According to the IRS, 25,386 employees have separated or taken a DRP incentive, while 294 employees have been sent termination notices due to RIF actions. There are also 31 employees (22 Information Technology employees and 9 probationary employees) who remain on administrative leave. However, as of May 2025, none of the employees who received a RIF notice have been terminated. 

They are still working because of a court injunction. An additional 3,023 probationary employees were also terminated and then reinstated due to the court injunction. Until the court challenges are resolved, these employees will continue to work at the IRS, unless they choose to separate or are terminated for other reasons. 

IRS actions have resulted in an approximate 26 percent reduction of its workforce. The National Taxpayer Advocaterecently reported that, without improved technology in place, the IRS staffing cuts could jeopardize the upcoming filing season. 

The National Taxpayer Advocate also stated, “to deliver a successful filing season, the IRS needs a sufficient number of trained employees to program its processing systems, develop and disseminate timely and clear guidance on tax law changes, answer telephone calls and process correspondence, among other things.”