Layoffs at the Internal Revenue Service are accelerating in 2025. It’s part of a broader federal workforce reduction under the Trump administration that’s drawing sharp criticism from workers and union leaders. More than 1,000 layoffs are expected at the IRS Kansas City processing center alone. Employees are describing the process as chaotic, demoralizing, and potentially illegal.
Supreme Court ruling clears path for mass layoffs
The U.S. Supreme Court ruled in July that the administration could move forward with a sweeping reduction-in-force (RIF) plan. This decision impacts federal agencies nationwide. The IRS — long targeted by critics of government overreach — has become a focal point. In Kansas City, thousands of jobs are at risk.
Shannon Ellis, head of the IRS union Chapter 66, said communication has broken down. Mental health concerns are rising, and services to taxpayers are already suffering.
“It’s like a psychological war,” Ellis told KCUR. “We’re seeing people break down, facing impossible decisions with no clear guidance.”
Disruption to taxpayer services and national funding
Employees and union officials warn that the layoffs will have serious downstream effects:
- Longer wait times for IRS phone lines
- Delays in processing tax returns and issuing refunds
- Disruption of programs funded by federal revenue, including SNAP and Veterans Affairs
Ellis emphasized the stakes. “If we don’t collect the money, the government can’t fund the programs Americans depend on.”
Union contract violations alleged
The National Treasury Employees Union alleges the layoffs and return-to-office mandates violate longstanding union contracts. IRS management reportedly revoked telework agreements and implemented new tracking procedures without proper negotiation.
“Managers are following illegal orders from higher-ups,” Ellis said. “They know it’s wrong, but they’re scared.”
Uncertainty breeds low morale
Managers have ordered IRS workers back to crowded offices. Many now share desks. Staffing levels are insufficient, overtime is mandatory, and morale has plummeted.
“Everyone is looking for a way out,” Ellis said. “Even people with 20 years in are retiring early just to escape this.”
What happens next
With lawsuits still pending and more RIF notices expected in the coming weeks, the full impact of the IRS layoffs remains unclear. What is certain is that critical services are already being disrupted. The fallout could stretch across the country.
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