IRS Planned Worker Cuts Would Hit Advocate, Filing Tool Staff

The Trump administration is seeking overall reductions of over 25% of the Taxpayer Advocate Service and 30% of the team running the IRS’s free Direct File tool, according to a plan obtained by Bloomberg Tax.

The plan includes an overall cutback of 18% of the IRS’s workforce by May 15, including some cuts that have already been made, according to the document. The IRS received the document March 13, according to a person familiar with the matter.

The figures in the plan include earlier layoffs of probationary employees and people who accepted an earlier deferred resignation offer. The IRS has since reinstated fired probationary employees in light of a court order, but has put those employees on administrative leave.

Federal agencies were directed to submit plans by March 13 for “large-scale reductions in force,” as part of President Donald Trump’s effort to slash the size of the US government.

A 15% cut is planned for the Chief Counsel’s office, the legal arm of the IRS. The office was exempt from earlier firings of probationary employees. The IRS Appeals Office, which handles taxpayer disputes, could see a reduction of 27%.

The Taxpayer Advocate Service saw eight of its 1,970 employees fired as part of the new hire layoffs in February. The Washington Post earlier reported on the overall planned cuts to that office.

“The IRS is currently working with the Treasury Department on the scope and allocation of workforce reductions,” National Taxpayer Advocate Erin Collins said."To my knowledge, no final decisions have been made.”

Prospective cuts to the IRS workforce are drawing warnings from many tax attorneys and policy advocates who say it will lead to delayed refunds, longer wait times, and to taxpayers not paying what they owe.