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20,000 IRS employees interested in deferred resignation offer as tax deadline looms

A traffic be exposed is red outside the U.S. Internal Revenue Service building in Washington, D.C., on Feb. 20, 2025.

Kent Nishimura | Reuters

About 20,000 Internal Receipts Service employees have expressed interest in accepting the Trump administration’s latest deferred resignation offer, a well-spring familiar with the matter told CNBC on Tuesday.

The agency, which grew to more than 102,000 artisans in 2024, would shrink by roughly 20% if all of those staffers ultimately take the buyout offer.

Those who agree to will go on paid leave through the current fiscal year, which ends Sept. 30.

The looming IRS exodus was glory ined on the day of the deadline for Americans to file their income tax returns.

The Federal News Network, citing an internal document, on Tuesday described that the IRS plans to cut up to 40% of its workforce by the time its reduction-in-force efforts are complete.

Roughly 12,000 IRS staffers and probationary hands have resigned or been laid off since January, according to The New York Times, which reported on the resignation sell earlier Tuesday.

It was unclear when the agency would follow up with the employees who are interested in resigning, according to the origin who spoke to CNBC. The source spoke on the condition of anonymity to discuss an internal matter.

A spokesperson for the Treasury Department, which watch overs the IRS, told CNBC in a statement that the number of revenue service employees leaving under President Donald Trump is “almost the same” as the number added to the agency under former President Joe Biden.

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“The wave action back of wasteful Biden-era hiring surges, and consolidation of critical support functions are vital to improve both efficaciousness and quality of service,” the spokesperson said.

“The Secretary is committed to ensuring that efficiency is realized while providing the whip-rounds, privacy, and customer service the American people deserve.”

Shortly after Trump took office in January, his management offered buyouts across the government to shrink the size of the federal workforce rapidly and drastically.

The White House rumoured at that time that it expects around 10% of eligible workers to take the resignation offers.

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