The IRS is preparing to reduce its workforce by as much as 50%, according to sources familiar with the plans.

The cuts will be implemented through layoffs, attrition, and incentivized buyouts, though the details remain confidential, reports the Associated Press.

Sources spoke on condition of anonymity, as they were not authorized to disclose this information. The layoffs are part of broader efforts by the Trump administration to downsize the federal workforce. Under the initiative led by Elon Musk’s Department of Government Efficiency, agencies are being closed, and nearly all probationary employees without civil service protection are being let go. A “deferred resignation program” has also been offered to federal employees, including IRS workers, as part of efforts to rapidly cut government staffing.

John Koskinen, a former IRS commissioner, warned that cutting tens of thousands of employees would render the agency “dysfunctional.” The IRS currently employs about 90,000 workers across the country, with 56% of the workforce being people of color and 65% women.

Earlier this year, approximately 7,000 probationary IRS employees, each with a year or less of service, were laid off. The IRS also extended “deferred resignation program” buyouts to employees, though those involved in the 2025 tax season were told they could not accept buyout offers until mid-May, after the tax filing deadline.

In addition to the layoffs, the Trump administration plans to deploy IRS workers to the Department of Homeland Security (DHS) to assist with immigration enforcement.

In a letter sent in February, DHS Secretary Kristi Noem requested IRS workers from Treasury Secretary Scott Bessent to support ongoing immigration crackdowns.