The Trump administration has taken aggressive action against the Internal Revenue Service, removing the agency’s top lawyer and announcing plans to slash nearly 20 percent of its workforce as part of Elon Musk’s Department of Government Efficiency (DOGE) initiative.
William Paul, a career official who had only been in the position since January, was pushed aside Thursday and will be replaced by Andrew De Mello, a Trump-era nominee who was previously tapped to be the Education Department’s inspector general during Trump’s first term.
The shake-up comes as DOGE seeks access to sensitive taxpayer records and implements sweeping staff reductions across the federal government, aligning with the administration’s conservative agenda to dramatically reduce the size of government agencies.
Massive Cuts Planned for Tax Agency
According to sources familiar with the matter, DOGE has directed the acting IRS commissioner to eliminate 18,141 jobs from the agency by May 15 – a move that would significantly impact the agency’s operations just weeks after the April tax filing deadline.
The largest reductions would target the tax compliance department, which would lose over 8,200 positions, followed by taxpayer services with more than 3,200 cuts. Information technology departments would also face substantial reductions.
Commerce Secretary Howard Lutnik expressed support for the administration’s approach to tax policy, stating, “I know what his goal is — no tax for anybody making under $150,000 a year.” This sentiment aligns with the administration’s broader vision of reducing the tax burden on middle-class Americans while simultaneously scaling back the federal agencies responsible for tax collection.
Controversial Data Requests
Beyond staff reductions, DOGE’s requests for sensitive taxpayer information have raised concerns among career staff at the IRS. According to reports, the Department of Homeland Security is seeking IRS data on approximately 700,000 undocumented immigrants, a request that many career employees believe may violate legal protections.
DOGE also hopes to use IRS records to identify potential fraud in federal benefits programs by cross-referencing tax records with benefit recipients. This has sparked concerns about privacy protections and the legal use of sensitive taxpayer information.
The removal of Paul, the IRS’s top lawyer, appears connected to these data requests, as he may have raised legal objections to sharing protected taxpayer information across agencies.
Part of Broader Federal Workforce Reduction
The IRS cuts are just one component of a larger effort by DOGE to slash the federal workforce. The agency, led by billionaire Elon Musk, has already overseen the termination of at least 30,000 federal employees across various departments.
However, these efforts have faced legal challenges. Just yesterday, U.S. District Judge William Alsup ruled that mass firings of probationary federal employees were “unlawful” and ordered several agencies to immediately reinstate fired workers. The judge criticized the administration’s characterization of the firings as performance-based, calling it “a gimmick” and “a lie.”
Despite this setback, DOGE continues to push forward with its reduction plans. Federal agencies are due to submit “reduction memos” that could affect as many as 250,000 additional federal employees who are still in their probationary period.
Conservative Vision for Tax Reform
The aggressive cuts to the IRS align with long-standing conservative opposition to the tax agency. President Trump has previously suggested that his tariff policies could eventually replace income tax revenue with what he has called an “External Revenue Service.”
This approach represents a dramatic shift from the Biden administration’s policy of strengthening the IRS to better enforce tax laws, particularly for wealthy individuals and corporations. The previous administration had secured funding to modernize the agency and hire additional enforcement personnel.
The current administration’s approach appears to be the opposite – reducing the agency’s capacity to collect taxes while simultaneously pursuing policies that would lower tax burdens for many Americans.
Conclusion
The dramatic cuts to the IRS workforce represent a significant victory for conservatives who have long advocated for reducing the size and scope of the tax agency. However, critics warn that weakening the IRS could lead to increased tax evasion, reduced government revenue, and potentially harm the government’s ability to function effectively.
As tax filing season approaches, the timing of these cuts raises questions about the IRS’s ability to process returns efficiently and provide adequate service to taxpayers. The administration appears committed to its vision of a smaller federal government, even as legal challenges mount and concerns about transparency persist.
The battle over the future of the IRS and other federal agencies is likely to continue as DOGE pursues its aggressive agenda of government reduction, setting up potential conflicts with career civil servants, legal authorities, and those who believe in maintaining robust government services.