Approximately 20,000 employees of the Internal Revenue Service (IRS) have indicated their willingness to accept the recent deferred resignation offer from the Trump administration, as reported by a source familiar with the issue to Finance Newso on Tuesday.
If all the employees who expressed interest in the buyout follow through, it would result in a workforce reduction of about 20% at an agency that expanded to more than 102,000 personnel in 2024.
Those opting for the offer will receive paid leave through the end of the current fiscal year, which concludes on September 30.
The potential mass departure from the IRS comes at a critical juncture, coinciding with the deadline for U.S. citizens to submit their income tax returns.
The Federal News Network reported Tuesday, citing internal documents, that the IRS intends to downsize by as much as 40% by the conclusion of its reduction efforts.
Since January, around 12,000 employees, including probationary staff, have left the IRS through resignations or layoffs, according to The New York Times, which also highlighted the resignation offer earlier in the day.
Details on when the agency will reach out to employees interested in leaving remain unclear, according to the source speaking to Finance Newso under the condition of anonymity.
A Treasury Department spokesperson, overseeing the IRS, stated to Finance Newso that the number of employees departing under President Trump aligns closely with the hires made under former President Joe Biden.
“The rollback of unnecessary hiring initiated during the Biden administration and the consolidation of crucial support roles are essential for enhancing efficiency and service quality,” the spokesperson commented.
“The Secretary is dedicated to achieving this efficiency while ensuring that revenue collection, privacy, and customer service standards meet the expectations of the American public.”
Following Trump’s inauguration in January, his administration rolled out buyout offers across the federal government aimed at rapidly reducing the size of the workforce.
At that time, the White House indicated it anticipated that around 10% of eligible staff would accept the resignation offers.
