Your Single Source for Global Tax
TaxSpoc Logo

US | Tax Policy 

January 28, 2025

Uncertainty Looms Over IRS as Trump Speaks about Terminating or Repurposing 88,000 IRS Workers

We’re in the process of developing a plan to either terminate all of them or decide what’s next for those positions

Uncertainty Looms Over IRS as Trump Speaks about Terminating or Repurposing 88,000 IRS Workers

| Photo by Bob  Price

During a rally at the Circa Resort & Casino in Las Vegas, former President Donald Trump made comments that have reignited debate over the future of the Internal Revenue Service (IRS). Trump criticized the agency’s staffing levels and funding, claiming the IRS attempted to hire 88,000 new employees, and suggested he might terminate many of their contracts.

“On Day 1, I immediately halted the hiring of any new IRS agents,” Trump told supporters. “You know they hired—or tried to hire—88,000 workers to go after you. We’re in the process of developing a plan to either terminate all of them or decide what’s next for those positions.”

The 88,000 figure Trump referenced stems from a Treasury Department report estimating that, with $80 billion in funding from the 2022 Inflation Reduction Act, the IRS could hire nearly 87,000 full-time employees over a decade. These hires were intended to include not only enforcement agents but also replacements for retiring staff and support personnel. However, Trump and other Republicans have repeatedly framed this as an effort to target everyday taxpayers.

The president's comments have created uncertainty about the agency’s future, especially following his indefinite hiring freeze for federal civilian positions, which includes the IRS. This measure allows only jobs deemed essential to national security or public safety to proceed. Trump’s administration has also signaled a broader intent to reduce the federal workforce through efficiency measures and attrition. The hiring freeze adds further challenges to the IRS, which has struggled for years with limited resources and declining staffing levels. In 2022, then-IRS Commissioner Charles Rettig stated that the agency would need to hire 52,000 employees over the next six years just to maintain its current operations. With funding in limbo and uncertainty over whether positions will be cut or repurposed, the IRS faces significant hurdles in addressing its long-standing backlog and enforcement priorities.

The political battle over the IRS highlights its role as a divisive symbol of government overreach for some and an underfunded necessity for others. Democrats argue that increased funding and staffing are critical to cracking down on tax evasion and generating additional revenue. In contrast, Republicans, including Trump, have painted the agency as a bloated bureaucracy unfairly targeting Americans. As the Trump administration develops its plans, questions remain about how these changes will affect the agency’s ability to function effectively, maintain adequate staffing, and fulfill its mandate. For now, the IRS faces an uncertain path forward amidst political scrutiny and shifting priorities.

 

SOURCES/ RECOMMENDED READ:

About Authors:

Egypt | VAT

Egyptian Tax Authority (ETA) Rolls Out a Transparent, Hassle-Free VAT System for Global Providers of Digital and Remote Services.

Italy | VAT

Italy Seeks Nearly €1 Billion in VAT payments from Meta, X, and LinkedIn, Targeting Transactions from 2015 to 2022

Egypt | Tax Policy

Fostering Trust, Partnership, and Business Confidence Through Fair and Efficient Tax Services

EU | Customs

The European Commission extends tariff suspension on U.S. imports until April 14, 2025, aiming to resolve trade tensions and avoid escalation

OECD BEPS | Turkey

Amount B will not be applied to transactions involving distributors, sales agents, and brokers operating in Turkey

Saudi Arabia | Big 4

The ban could lead Saudi authorities to implement stricter compliance regulations for consulting firms

EU | Transfer Pricing

MNEs will be required to submit their first top-up tax information return by 30 June 2026, tax authorities will need to exchange this information by 31 December 2026

EU | Tax Policy

Focus on Green Transition, Addressing the VAT gap, and Commitment to Global Tax Reform are some of the priorities

Reach your target audience

Contact us at hello@taxspoc.com

TaxSpoc Logo

Follow Us:

Taxspoc, UAB 2024. The Taxspoc is not responsible for the content of external sites.