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

The people spoke on condition of anonymity because they weren't authorised to disclose the plans.

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 United States, according to the latest IRS data. People of colour make up 56% of the IRS workforce, and women represent 65%.

According to a White House memo sent to federal agencies in late February, agencies are to develop a report by March 13 on its reduction in force plans — but it is unclear whether the White House will approve the IRS' reorganization plan and over what period of time it would be implemented.

Representatives for the White House, the Treasury Department and IRS did not respond to an Associated Press request for comment. The New York Times first reported the deliberations.