IRS Layoffs & DOGE Drama… And I Scream from the Top of My Lungs - What’s Going On?

Feb 16, 2025

A white male tax professional in his late 30s with short platinum blonde hair, wearing tortoiseshell glasses and a black turtleneck, sitting at a desk cluttered with tax documents and a laptop. He has a bewildered expression, raising his hands in frustration while looking at IRS paperwork. The background features a bookshelf with tax law books and a calendar marked with deadlines. The setting is a professional office with warm lighting.

Tax professionals across the country are facing unprecedented challenges and anxiety as the new administration reshapes federal agencies, including the Treasury Department and, ultimately, the IRS. These rapid changes—notably the planned firing of 15,000 IRS employees and the controversial access granted to the unofficial Department of Government Efficiency (DOGE) within the Treasury—could have serious implications for taxpayers, refunds, audits, and data security.

With major tax organizations remaining silent, tax professionals must take the lead in staying informed, advocating for transparency, and ensuring that taxpayers and businesses are prepared for these disruptions.

Issues Affecting Tax Professionals

Up to 15,000 IRS Employees Set to Be Fired in the Middle of Tax Season

The IRS is set to fire 15,000 probationary employees—potentially as early as this week—during peak tax filing season.

Who is affected? The firings will target probationary employees who are not yet granted full civil service protections.

Why is this happening? The move aligns with the Trump administration’s federal workforce reduction efforts and budget reallocations to prioritize government efficiency initiatives like DOGE.

How will this impact taxpayers and professionals? Expect delays in tax return processing, extended wait times for IRS assistance, and slower refunds—potentially affecting millions of Americans.

What You Can Do:
Set client expectations for delayed processing times.
Advise clients to file early and use e-filing with direct deposit for the fastest refunds.
Engage with lawmakers (more on this below).

Full story: AP News | NY Times

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DOGE’s Treasury Access Raises Concerns Over Financial Security

The newly created Department of Government Efficiency (DOGE), overseen by Elon Musk, was granted access to Treasury payment systems that handle:

Over $5 trillion in annual payments (Social Security, tax refunds, federal salaries)
IRS payment processing and taxpayer records

Why this is concerning:

DOGE’s role and level of access remain unclear—raising questions about financial security and taxpayer data.
A coalition of 19 states sued to block DOGE’s access, leading to a federal court injunction preventing DOGE from handling Treasury payment data.
The administration is challenging the court’s decision, making the final outcome uncertain.

More on this: Center for Budget and Policy Priorities

What You Can Do:

Monitor changes in IRS and Treasury policies regarding DOGE’s role.
Ensure clients’ financial and tax data security remains a top priority for your firm.
Reach out to lawmakers to demand transparency in DOGE’s oversight and access to financial systems.
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How Tax Professionals Can Take Action

A mid-30s tax professional with platinum hair, wearing tortoiseshell glasses, sitting at a modern desk while talking on the phone with their senator. They have a serious and determined expression, with one hand holding the phone and the other jotting down notes. The desk is cluttered with tax documents, a laptop, and a coffee mug. In the background, a bookshelf with tax law books and a U.S. flag are visible, emphasizing the professional and political setting.

This is not a political issue—it’s about ensuring a functional tax system and financial security for taxpayers and businesses. However, it is clear that we must advocate for ourselves and for our clients.

Contact Your Representatives & Senators

Your elected officials need to hear from tax professionals about how these changes affect taxpayers. Be professional, factual, and solution-focused when reaching out.

Find your lawmakers:

House Representatives: House.gov

Senators: Senate.gov

What to say?

Express concern over IRS staffing cuts and their potential impact on tax processing times.
Request oversight of DOGE’s Treasury access to protect taxpayer funds.
Advocate for clarity on how these changes will be implemented.

This Information Is Rapidly Changing—Stay Updated!

These IRS firings and DOGE’s access to Treasury systems are not just bureaucratic shifts—they are fundamental disruptions that will directly impact taxpayers, refunds, audits, and the financial security of millions. With these changes imminent, tax professionals must take the lead.

Now is the time to stay informed, take action, and protect taxpayer interests. If we don’t, we risk being blindsided by changes that could reshape tax administration for years to come.

Tax professionals must step up—by staying informed, advocating for transparency, and ensuring that taxpayers and businesses are protected. The future of tax administration is being decided now. Tax professionals must decide whether to help shape it—or let it be shaped for them.