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Officials at the IRS and Treasury Department are anticipating tax revenue to drop more than 10% by April 15 compared with last year, The Washington Post reported Saturday, citing three people with knowledge of the situation.
The loss of tax receipts is expected as more individuals and businesses don’t file taxes or attempt to avoid paying balances owed to the IRS. The amount of lost federal revenue could top $500 billion, the paper said.
Officials said the prediction is directly linked to shifting taxpayer behavior and President Donald Trump’s cuts at the IRS, the Post said.
Thousands are expected to lose their jobs at the agency as part of Elon Musk’s Department of Government Efficiency spending reductions. Experts have warned that the cuts during tax season could materially impact filers.
President Donald Trump has ordered agencies across the federal government to turn in their “large scale” layoff plans — known as Reduction in Force, or RIF — by Thursday.
The details of the IRS proposal have been laid out in an email from DOGE and will be discussed at a meeting among agency leadership Thursday morning, according to a source familiar with the matter who asked to remain anonymous for fear of retaliation. The proposal has not been made public.
The latest round of layoffs would terminate nearly 6,800 employees — on top of about 6,700 probationary employees who have already been fired and 4,700 employees who took the “voluntary buyout” known as the “Fork in the Road” program from the Trump administration. Probationary employees are hires who generally have have been on the job for less than a year.
The IRS is drafting plans to cut as much as half of its 90,000-person workforce, sources say
The Internal Revenue Service 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 government workforce.
US DOGE Service Agreement With Department of Labor Shows $1.3 Million Fee—and Details Its Mission
The unsigned agreement between the US DOGE Service and the Department of Labor provides significant insight into DOGE’s work with federal agencies.
Notably, the agreement, obtained by WIRED, calls for the DOL to reimburse the USDS up to $1.3 million for work done by four DOGE affiliates, or “a slightly different number,” over an 18-month period. The agreement also includes a section titled “scope of work” that details how DOGE will operate with the DOL. Together, these aspects of the agreement give the clearest look yet at how DOGE's relationships with government agencies may be structured.
The Government Accountability Office’s audit examines DOGE’s handling of data at a number of federal agencies, according to sources and records reviewed by WIRED.
Across the federal government, Elon Musk’s so-called Department of Government Efficiency (DOGE) has gained access to untold volumes of data containing the personal information of hundreds of millions of Americans. The data includes information like addresses, tax filings, family members, and medical records for everyone from average citizens receiving Social Security benefits, to millions of current and past federal employees, and applicants for government jobs, as well as judges who hear disputes between government agencies, companies, and everyday Americans.
Exactly what DOGE is doing with all this data seems to be an open question, according to court filings reviewed by Rolling Stone and American Doom. Those filings show that lawyers representing Donald Trump’s administration have failed to explain why DOGE needs the data. And even the simple fact that DOGE has access to this data appears to represent a blatant and widespread violation of the Privacy Act of 1974, according to plaintiffs in a slew of lawsuits directed at DOGE’s work inside the government.
The lawsuits — and DOGE’s access to reams of data at agencies like the Social Security Administration (SSA), the Treasury Department, and the Office of Personnel Management (OPM) — have prompted federal judges to issue restraining orders prohibiting DOGE from continuing to access the data. In Maryland, U.S. District Judge Deborah Boardman recently ordered that DOGE stop accessing data at the Treasury Department, saying it was likely a violation of the Privacy Act. Also in Maryland, another federal judge, Ellen Lipton Hollander, ordered DOGE to stop accessing data at the SSA that has provided Musk’s organization with the personal information of every single person in the country who possesses a Social Security number. DOGE has access not just to every U.S. citizen’s personal information thanks to the SSA data, but also anyone who has applied for or been granted Social Security numbers, like legal immigrants, according to court documents reviewed by Rolling Stone and American Doom.

Federal spending is higher since President Trump took office even as the Department of Government Efficiency slashes contracts, cuts jobs and ends diversity programs.
A Wall Street Journal analysis of daily financial statements issued by the Treasury Department found government spending since the inauguration is $154 billion more than in the same period in 2024 during the administration of President Joe Biden.
DOGE claims cuts of $150 billion so far, but the Journal analysis found those efforts have yet to affect the bottom line.
And while the government’s income—taxes and revenues including tariffs—is also up, it isn’t enough to keep pace with higher spending.
In the first days of March, a team of advisers from President Trump's new Department of Government Efficiency initiative arrived at the Southeast Washington, D.C., headquarters of the National Labor Relations Board...
The DOGE employees, who are effectively led by White House adviser and billionaire tech CEO Elon Musk, appeared to have their sights set on accessing the NLRB's internal systems. They've said their unit's overall mission is to review agency data for compliance with the new administration's policies and to cut costs and maximize efficiency.
Meanwhile, according to the disclosure and records of internal communications, members of the DOGE team asked that their activities not be logged on the system and then appeared to try to cover their tracks behind them, turning off monitoring tools and manually deleting records of their access — evasive behavior that several cybersecurity experts interviewed by NPR compared to what criminal or state-sponsored hackers might do.
The employees grew concerned that the NLRB's confidential data could be exposed, particularly after they started detecting suspicious log-in attempts from an IP address in Russia, according to the disclosure.
