The Internal Revenue Service (IRS) has announced the layoffs of approximately 7,000 probationary workers, predominantly in compliance roles, which experts fear will negatively impact efforts to crack down on high-wealth tax dodgers. The layoffs, part of a larger government-wide purge, are expected to reduce revenue collections and hinder customer service during tax season. The move comes amid efforts by the Trump administration’s Department of Government Efficiency, led by Elon Musk, to shrink the federal workforce and prioritize spending cuts. The layoffs have drawn criticism from experts like Vanessa Williamson, who argue that underfunding and understaffing the IRS will hamper enforcement efforts, particularly against wealthy tax evaders. The Inflation Reduction Act, passed by President Joe Biden in 2022, had allocated $80 billion to the IRS for hiring and technology upgrades, but some of the funding was later rescinded by congressional Republicans. Critics warn that the layoffs will harm everyday taxpayers while potentially encouraging tax evasion among the wealthy. The National Treasury Employees Union has filed legal challenges against the mass layoffs, which have raised concerns about decreased enforcement activity and delayed tax refunds. Treasury, IRS, and White House officials have not commented on these developments.
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