WASHINGTON — The IRS will lay off thousands of probationary workers in the middle of tax season, according to two sources familiar with the agency’s plans, and cuts could happen as soon as next week.

This comes as the Trump administration intensified sweeping efforts to shrink the size of the federal workforce, by ordering agencies to lay off nearly all probationary employees who had not yet gained civil service protection.

It’s unclear how many IRS workers will be affected.

Previously, the administration announced a plan to offer buyouts to almost all federal employees through a “deferred resignation program” to quickly reduce the government workforce. The program deadline was Feb. 6, and administration officials said employees who accept will be able to stop working while still collecting a paycheck until Sept. 30.

However, IRS employees involved in the 2025 tax season were told they will not be allowed to accept a buyout offer from the Trump administration until after the taxpayer filing deadline, according to a letter sent recently to IRS employees.

It is unclear how many workers will be impacted by the layoff announcement plan. Representatives from the U.S. Treasury and IRS did not respond to Associated Press requests for comment.

Tax Season Expectations and IRS Funding

Jan. 27 was the official start date of the 2025 tax season, and the IRS expects more than 140 million tax returns to be filed by the April 15 deadline. The Biden administration invested heavily in the IRS through an $80 billion infusion of funds in Democrats’ Inflation Reduction Act, which included plans to hire tens of thousands of new employees to help with customer service and enforcement as well as new technology to update the tax collection agency.

Republicans have been successful at clawing back that money, and billionaire Elon Musk and his Department of Government Efficiency have called for the U.S. to “delete entire agencies” from the federal government as part of his to radically cut spending and restructure its priorities.

Elected officials are trying to fight against DOGE plans. Attorneys general from 14 states challenged the authority of to access sensitive government data and exercise “virtually unchecked power” in a lawsuit filed Thursday.

The lawsuit, filed in federal court in Washington, says the actions taken by Musk at the helm of DOGE can only be taken by a nominated and Senate-confirmed official. It cites constitutional provisions that delineate the powers of Congress and the president.