Press Release

IRS Firings Jeopardize Essential Services for Millions of Americans

02. 20. 2025

Terminations Threaten Access to Direct File, Ability to Claim Life-Saving Tax Credits and Refunds, and Enforcement Against Wealthy Tax Cheats

WASHINGTON – Today’s firing of more than 6,000 IRS workers at the height of tax filing season throws one of the most critical functions of government into chaos. The firings, which target workers responsible for enforcement, will make it easier for wealthy tax cheats to continue getting away with not paying their taxes—robbing the government of the revenue we need to invest in our communities. The research shows that when IRS funding is cut, audits on the wealthy face the chopping block, and that puts our federal budget out of balance. 

Depending on how widespread they are, firings could eventually impact IRS Direct File, the always-free, online filing tool that is available in 25 states to more than 32 million households, which Trump Treasury Secretary Bessent committed to keep up and running throughout this tax season. Kneecapping the product team or firing customer service representatives will mean IRS workers can’t replicate the excellent user experience they delivered last year, and could reverse significant progress the agency has made in modernizing tax filing, including the expansion of Direct File and the implementation of prepopulated W2 forms. 

“Americans want the government to work for them,” said Adam Ruben, Vice President of Campaigns and Political Strategy at Economic Security Project. “It would be a huge blow to all Americans if the Trump Administration screws up tax season, delays refunds, or lets wealthy tax cheats off the hook. The services we rely on – from Medicaid to Social Security, to education, to public transportation – are all paid for by taxpayers; without a fully functioning IRS, the entire federal budget could be compromised.  Let’s be clear: today’s firings are a boon to billionaires and big corporations who will benefit handsomely from a less efficient and understaffed IRS. Simply put, this decision puts more dollars in the hands of wealthy tax cheats and less in the hands of American families.”