Trump Administration Considers Major Overhaul of the IRS

The Trump administration’s Treasury Department is exploring significant options to streamline operations at the Internal Revenue Service (IRS). Recent reports suggest that as much as half of the IRS workforce, which currently stands at approximately 90,000 employees, could face termination.

Efficiency and Modernization at the IRS

In a statement to Fox News Digital on Wednesday, a Treasury spokesperson highlighted the administration’s commitment to efficiency and deficit reduction as driving factors behind potential changes. “In line with the Trump administration’s focus on efficiency and deficit reduction, the Treasury Department is considering a wide range of possible streamlining initiatives,” the spokesperson said.

While no specific plan has been finalized, the spokesperson emphasized the need for modernization. “Modernization is necessary to keep up with the process by which Americans file their taxes, including the reality that over 90% of individual tax returns are filed electronically,” they added. The proposed changes seek to improve taxpayer customer service and facilitate a smoother filing season.

Possible Staff Reductions

According to reports, the IRS is in the process of drafting plans that could result in the terminations of thousands of employees. This aligns with the Department of Government Efficiency’s broader initiative to audit various federal agencies and eliminate waste, mismanagement, and fraud. Agencies across the federal government, including the Department of Health and Human Services, the U.S. Agency for International Development, and the Department of Energy, have already seen significant staff reductions.

The IRS has already terminated about 7,000 probationary employees as part of these efforts. The Trump administration’s policies have led to extensive layoffs and reorganizations, especially among newly hired and recently reassigned federal workers.

Reassignments and New Roles for IRS Agents

Beyond terminations, there are discussions about reassigning some IRS agents to aid the Department of Homeland Security (DHS) in immigration enforcement. President Donald Trump suggested the idea of relocating IRS agents to the U.S.-Mexico border shortly after his inauguration, claiming they could assist with border security.

“On day one, I immediately halted the hiring of any new IRS agents,” Trump stated during a rally at the Circa Resort & Casino in Las Vegas earlier this year. “They hired, or tried to hire, 88,000 new workers to go after you. And we’re in the process of developing a plan to either terminate all of them or maybe we’ll move them to the border.”

Trump emphasized that this initiative could involve allowing IRS agents to carry firearms, as certain IRS agents are authorized to do under IRS regulations outlined in 26 U.S. Code § 7608.

The Role of Homeland Security

The idea to involve IRS agents in immigration enforcement has gained traction, with the Department of Homeland Security sending a letter to Treasury Secretary Scott Bessent. This letter requested that IRS agents be made available for immigration enforcement efforts conducted by Immigration and Customs Enforcement (ICE).

DHS Secretary Kristi Noem mentioned that Trump directed the agency to “take all appropriate action to supplement available personnel to secure the southern border and enforce the immigration laws of the United States,” which includes potentially using IRS agents for immigration-related functions.

Timing and Public Response

The Trump administration’s moves to streamline the IRS come as tax season approaches, with the deadline for individuals to file their federal income tax returns set for April 15. As the administration navigates these changes, public response varies, with some praising efforts to reduce government size and others expressing concern about the potential impacts on taxpayer services.

Conclusion

The ongoing discussions around the future of the IRS and potential staffing changes reflect the Trump administration’s overarching strategy to reshape the federal government’s approach to various agencies. As these plans evolve, the focus remains on restructuring for efficiency while addressing the complexities of tax administration and immigration enforcement.

Fox News Digital’s Greg Wehner contributed to this report.