IRS to Cut 6,700 New Employees Agency-Wide This Week (1)

The IRS will terminate 6,700 of its probationary employees this week, according to a person familiar with the decision.

Democratic lawmakers and unions warned cutting the workforce in the middle of tax filing season could upend taxpayer services and slow refunds. It’s also expected to bring audit relief to some of the big companies and wealthy individuals who aren’t paying what they owe as expertise and manpower leaves the agency.

Over 3,500 probationary employees in the Small Business/Self-Employed Division will be terminated, leaders in the division said in an email sent to managers Wednesday and seen by Bloomberg Tax.

Managers ...