WASHINGTON — The IRS is drafting plans to cut its workforce by as much as half through a mix of layoffs, attrition and incentivized buyouts, according to two people familiar with the situation.

The people spoke Tuesday on condition of anonymity because they weren’t authorized to disclose the plans.

The layoffs are part of the Trump administration’s efforts to shrink the size of the federal workforce through billionaire Elon Musk’s Department of Government Efficiency by closing agencies, laying off nearly all probationary employees who have not yet gained civil service protection and offering buyouts to almost all federal employees through a “deferred resignation program” to quickly reduce the size of the government workforce.

A reduction in force of tens of thousands of employees would render the IRS “dysfunctional,” said John Koskinen, a former IRS commissioner.

The federal tax collector employs roughly 90,000 workers total across the country, according to the latest IRS data. People of color make up 56% of the IRS workforce, and women represent 65%.

Already, roughly 7,000 probationary IRS employees with roughly one year or less of service were laid off from the organization in February.

The organization also offered IRS employees — along with almost all federal employees across the government — “deferred resignation program” buyouts, though IRS employees involved in the 2025 tax season were told earlier this month that they would not be allowed to accept a buyout offer from the Trump administration until mid-May, after the taxpayer filing deadline.