Exit The Taxman

Under the Trump administration, the IRS is shrinking—and that’s welcome news for hardworking Americans tired of bureaucratic overreach. In a significant reversal of Biden-era expansion, the agency’s workforce has been slashed by 25 percent, resulting in the loss of roughly 26,000 employees. This dramatic reduction signals a long-overdue shift away from the heavy-handed enforcement tactics that targeted middle-class taxpayers and small businesses.

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According to a recent snapshot report, the Trump administration is actively working to shrink the federal workforce, with the IRS leading the charge. To facilitate this reduction, the agency implemented Deferred Resignation Programs (DRP), allowing employees to resign while continuing to receive pay through September 30, 2025, or longer if retiring between October 1 and December 31. In addition, the IRS offered Voluntary Early Retirement Authority (VERA) and Voluntary Separation Incentive Payments (VSIP) to encourage staff departures.

In April 2025, the agency escalated efforts with formal Reduction in Force (RIF) actions. According to internal records, 25,386 employees either separated from service, accepted a DRP, or left through other incentive programs. Another 294 received termination notices due to RIF measures. Among those exiting were approximately 4,600 employees who took the January buyout and 17,000 who opted for early retirement—alongside thousands more through various departures.

The report states that Information technology will lose 23 percent of its workforce, while the management and analysis division is set to shed 28 percent of its staff.