Senate Democrats told leadership at Treasury and IRS that it is “nearly inevitable” that the recent IRS hiring freeze and potential staff layoffs will “delay refunds and degrade taxpayer service.”
In a February 18 letter, Senate Minority Leader Chuck Schumer (D-NY), Senate Finance Committee Ranking member Ron Wyden (D-OR), and seven Senate Finance Democrats request answers on why the IRS hiring freeze is in the “national interest.” They also seek clarification on which IRS positions are exempt from the freeze because they have been deemed “necessary” or related to “national security” or “public safety.”
The letter was sent to Treasury Secretary Scott Bessent, acting IRS Commissioner Doug O’Donnell, OMB Director Russell Vought, and acting OPM Director Charles Ezell.
The Democrats reference President Donald Trump’s January 20 executive order that froze federal hiring for 90 days for all civilian positions at executive departments and agencies — but indefinitely for the IRS. Limited exemptions are available for positions related to national security or public safety, or at the discretion of the OPM director.
With reports that “mass layoffs” are ahead — which would further slash IRS staffing — the lawmakers say there could be a “catastrophic impact” on the current filing season. Their chief concern: “the ability of Americans to quickly get tax refunds and assistance filing their taxes.”
In addition, the lawmakers contend that IRS Criminal Investigation staff should be exempt from the freeze. They point to these staffmembers’ work to “investigate fentanyl trafficking by cartels, human trafficking, terrorism financing, and sanctions evasion.”
So far across various federal agencies, probationary employees have been the main target of staffing cuts. With an influx of Inflation Reduction Act funding and a push toward modernization and service improvements, IRS staff grew to 100,000 workers under former President Joe Biden — including 16,000 probationary workers. According to Reuters, 7,500 IRS employees have now been identified for dismissal.
It is unclear how many of those workers are involved with filing season tasks. However, Senate Democrats are concerned that staffing cuts will impact the IRS’ ability to “answer [taxpayer] questions, process their returns, send them refunds, and keep IRS systems online and functional.”
But beyond the currently planned staffing cuts, the lawmakers caution that the IRS workforce could face further reductions for reasons that are outside of the Trump administration’s control. “Nearly two-thirds of IRS employees are eligible to retire now or will be eligible within five years,” reads the letter. And the agency’s customer service division also has a “high attrition rate” that has ranged from 16 to 36% in recent years.
Further reductions to the IRS workforce may have occurred in conjunction with the Deferred Resignation Program, which allowed government workers to voluntarily resign while continuing to receive pay and benefits through September 30, 2025. However, the IRS has said it will use a different timeline for staff in certain roles related to the filing season — they must work until mid-May to participate in the buyout program.
In addition, Trump has threatened to send IRS agents to the U.S. border. While Trump claims this led to 1,500 letters of resignation, Reuters found no evidence that any staff resigned after the threat.
The lawmakers request responses by February 27, 2025, on their requests to avoid widespread IRS layoffs and end the hiring freeze for IRS filing season support and Criminal Investigation staff.
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