Thousands of workers in IRS small business division to lose jobs – Journal of Accountancy

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More than 3,500 employees in the Small Business/Self-Employed (SB/SE) division of the IRS will lose their jobs this week, according to an email sent to IRS managers on Wednesday. The affected employees are expected to be notified Thursday, according to the email signed by Lia Colbert, SB/SE commissioner, and four other SB/SE managers.

“As an IRS leader, we ask you to be in the office the remainder of the week,” the email says. “Even if you don’t have impacted probationary employees, you can help these employees in the safest, most dignified way possible. Our new hires will understandably be experiencing a range of emotions.”

The National Treasury Employees Union, which includes IRS workers, did not respond to an email seeking comment.

The Associated Press, The New York Times, and other outlets, citing anonymous sources, reported higher totals of IRS employee terminations.

The SB/SE division serves over 57 million small business owners and self-employed taxpayers with business interests that have less than $10 million in assets. Self-employed people make up the bulk of that number — 41 million, according to the IRS.

AICPA leaders said Sunday the IRS should consider the needs of taxpayers and preparers as officials planned to carry out President Donald Trump’s directive to cut the federal workforce.

“Americans deserve a fully functioning agency that can be respected by taxpayers and their preparers, thereby allowing them to comply with their tax obligations,” AICPA President and CEO Mark Koziel, CPA, CGMA, said in a statement.

“Many are concerned with potential challenges that could arise from recent changes throughout government,” Koziel’s statement said. “While there is a lot of speculation and many unknowns, the AICPA is actively monitoring the situation and engaging with IRS leadership and other key stakeholders to understand and mitigate the impact of these changes on IRS services.”

Melanie Lauridsen, the AICPA’s vice president–Tax Policy & Advocacy, said in a LinkedIn post Sunday that “the IRS must have the ability to meet the needs of taxpayers and their preparers, and we continue to urge the administration to maintain the necessary support to ensure taxpayers receive the guidance they need and deserve.”

Tax-filing season opened Jan. 27.

The AICPA maintains a Tax Season Resource Center with guidance, tools, and developments throughout tax-filing season.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.