Approximately 22,000 employees at the Internal Revenue Service have accepted the latest resignation offer from the Trump administration, as reported by four knowledgeable sources. This significant departure could potentially undermine the agency’s tax collection capabilities.
Before President Trump assumed office, the I.R.S. employed around 100,000 individuals. Since January, about 5,000 employees have resigned, and an additional 7,000 probationary staff members have been laid off, a decision that is currently being contested in court. If these layoffs proceed, the agency is projected to lose nearly one-third of its workforce within the year.
According to the deferred resignation offer from the Trump administration, employees who accept the proposal will receive paid administrative leave until September before exiting their federal roles. Some who agree to the offer may still have the opportunity to retract their resignation.
Losing one-third of the I.R.S. personnel—amidst anxieties of additional layoffs and budget cuts—is anticipated to negatively impact the federal government’s revenue collection. Current and former employees have indicated that the I.R.S. has already ceased certain audits, and taxpayers might feel more empowered to evade tax responsibilities with the agency’s diminished presence.
In contrast, the Biden administration added approximately 20,000 employees to the I.R.S. with the intention of boosting tax revenue collection. A spokesperson for the Treasury mentioned that the department aims to reverse the prior administration’s hiring measures.
“The Secretary is dedicated to ensuring that efficiency is achieved while upholding the collections, privacy, and customer service that the American public deserves,” commented the spokesperson for Treasury Secretary Scott Bessent.
Among those resigning from the I.R.S. is the acting commissioner, Melanie Krause. She, along with other senior officials, chose to leave the agency partly due to an agreement to share taxpayer information with Immigration and Customs Enforcement. The decision by the Trump administration to utilize I.R.S. data to assist in the deportation of undocumented immigrants has created significant concern within the tax agency, which has traditionally safeguarded taxpayer confidentiality.
