IRS fires 6,000 employees as Trump slashes US government

Staff at the US Internal Revenue Service were told on Thursday that about 6,000 employees would be fired, in a move that would eliminate roughly six per cent of the agency's workforce in the midst of the busy tax-filing season.

The cuts are part of US President Donald Trump's sweeping downsizing effort that has targeted bank regulators, forest workers, rocket scientists and tens of thousands of other government employees. The effort is being led by tech billionaire Elon Musk, Trump's biggest campaign donor.

Musk was on stage at the Conservative Political Action Conference in National Harbor, Maryland, when Argentine President Javier Milei, known for wielding a chainsaw to illustrate his drastic policies slashing government spending, handed him one.

"This is the chainsaw for bureaucracy," said Musk, holding the power tool aloft as a stage prop to symbolise the drastic slashing of government jobs.

Labor unions have sued to try to stop the mass firings, under which tens of thousands of federal workers have been told they no longer have a job, but a federal judge in Washington on Thursday ruled that they can continue for now.

IRS director of talent acquisition, Christy Armstrong, teared up as she told employees on a phone call that about 6,000 of their colleagues would be laid off and encouraged them to support each other, a worker who was on the call said.

The layoffs are expected to total 6,700, according to a person familiar with the matter, and largely target workers at the agency hired as part of an expansion under Democratic President Joe Biden, who had sought to expand enforcement efforts on wealthy taxpayers. Republicans have opposed the expansion, arguing that it would lead to harassment of ordinary Americans.

The tax agency now employs roughly 100,000 people, compared with 80,000 before Biden took office in 2021.

Independent budget analysts had estimated that the staff expansion under Biden would work to boost government revenue and help narrow trillion-dollar budget deficits.

Those fired include revenue agents, customer-service workers, specialists who hear appeals of tax disputes, and IT workers, and impact employees across all 50 states, sources said. The IRS did not respond to a request for comment.

The IRS has taken a more careful approach to downsizing than other agencies, given that it is in the middle of the tax-filing season. The agency expects to process more than 140 million individual returns by the April 15 filing deadline and will retain several thousand workers deemed critical for that task, one source said.

The Trump administration's federal layoffs have focused on workers across the government who are new to their positions and have fewer protections than longer-tenured employees.