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IRS plans major cuts: 75% of employees from civil rights office to be laid off

The IRS Office of Civil Rights and Compliance was responsible for investigating discrimination against taxpayers, but faces a major staff reduction amid upcoming layoffs.
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An email shared with Scripps News indicates that the Internal Revenue Service (IRS) plans to cut 80% of its 200 employees from its Office of Civil Rights and Compliance. About 75% of the employees will be laid off, while about 5% of the workforce are taking buyouts.

A handful of employees are leaving the office through buyouts offered to federal workers. The majority will be cut as part of the Trump administration’s efforts to reduce the size of government.

The office was formerly known as the Office of Equity, Diversity, and Inclusion and was “tasked with upholding and protecting the civil rights of taxpayers.”

It was responsible for investigating discrimination against the IRS and several programs funded by the agency. The Office of Civil Rights and Compliance stated that it investigated complaints related to age, sex, color, disability, race, religion, and national origin discrimination against taxpayers.

About 20% of the employees in the office will be moved to the IRS Office of Chief Counsel.

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“Staffing reductions that are currently being considered at the IRS will be part of — and driven by — process improvements and technological innovations that will allow the IRS to collect revenue and serve taxpayers more effectively. The rollback of wasteful Biden-era hiring surges, and consolidation of critical support functions, are vital to improving both efficiency and quality of service. The Secretary (of the Treasury Scott Bessent) is committed to ensuring that this efficiency is realized while providing the collections, privacy, and customer service the American people deserve,” a spokesperson for the Department of the Treasury told Scripps News.

IRS staffing declined for years before congressional Democrats approved the Inflation Reduction Act, which was signed into law by President Joe Biden in 2022. The Inflation Reduction Act, which provided $80 billion for the IRS to strengthen its staffing, was universally opposed by congressional Republicans.

The bolstering of IRS staff came as audit rates declined and many taxpayers claimed that it was becoming increasingly difficult to contact the IRS.

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The Trump administration, however, has pledged to reduce the size of the IRS. The Associated Press reported on Friday that the administration plans to cut up to 25% of the agency’s staff this year.