Commerce Secretary Howard Lutnick said on Wednesday that President Trump's goal is to abolish the Internal Revenue Service (IRS).

"Think about it, Donald Trump announces the External Revenue Service, and his goal is very simple (...) his goal is to abolish the Internal Revenue Service and let all the outsiders pay," Lutnick told Fox News host Jesse Watters.

Lutnick: Donald Trump announced the external revenue service, and his goal is simple: to abolish the internal revenue service and let all the outsiders pay. pic.twitter.com/k8KIUS8evR

— Acyn (@Acyn) February 20, 2025

Trump has said that the External Revenue Service will force foreign trade partners to "finally pay their fair share," and has previously floated the idea of abolishing federal income taxes as part of his plans for "tariffing and taxing foreign nations to enrich our citizens."

Lutnick also said that Elon Musk and DOGE were "going to cut" $1 trillion, "and then we're going to get rid of all these tax scams that hammer against America, and we're going to raise a trillion dollars of revenue."

The IRS is responsible for collecting the federal taxes from individuals and corporations - taking in some $823 billion in individual taxes in 2024, roughly 52% of total revenue, according to the Treasury Department.

Lutnick's remarks come as the IRS is reportedly looking to lay off thousands of workers. According to the Associated Press, the agency will start by letting go roughly 7,000 probationary workers in Washington and around the country. Those with roughly one year or less of service at the agency - largely in compliance departments - will be affected, according to the report.

The layoffs are part of the Trump administration’s intensified efforts to shrink the size of the federal workforce through the Department of Government Efficiency by ordering agencies to lay off nearly all probationary employees who have not yet gained civil service protection. They come despite IRS employees involved in the 2025 tax season being 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.

It’s unclear how the layoffs may affect tax collection services this year. As the nation’s revenue collector, the IRS was tasked during the Biden administration with targeting high-wealth tax evaders for an additional stream of income to the U.S., which is $36 trillion in debt. By the end of 2024, the IRS collected over $1.3 billion in back taxes from rich tax dodgers. -AP

On Wednesday, the NY Times reported that the IRS would begin laying off roughly 6,000 employees on Thursday, and will target 'relatively recent hires which the Biden administration had attempted to revitalize with a surge of funding and new staff.' According to that report, IRS managers on Wednesday began asking their employees to bring their government-issued equipment to the office.

"Under an executive order, I.R.S. has been directed to terminate probationary employees who were not deemed critical to filing season," one email reads. "We don’t have many details that we are permitted to share, but this is all tied to compliance with the executive order."

According to former IRS official Dave Kautter, "There’s a flood of résumés from people at the I.R.S. looking for jobs throughout the tax community," adding "Law firms are getting a fair number of résumés, accounting firms are getting a fair number of résumés."

The IRS employs roughly 90,000 people across the country.