Importantly, retirees that owe tax on Social Security income must make quarterly estimated payments to the Internal Revenue Service (IRS). Alternatively, retirees can request that a portion of their benefits be withheld by submitting a Form W-4V to their local Social Security office by mail or fax.

Losing half of its employees would severely strap the I.R.S., meaning Americans may have to wait longer to receive tax refunds.

The agency is also restructuring and closing six of 10 regional offices that coordinate and provide support to employees who serve beneficiaries.

Calling its workforce “bloated,” the Social Security Administration announced Friday plans to slash about 7,000 jobs, or roughly 12% of its staff. The potential cuts are part of a larger reorganization at the agency in line with the Trump administration’s drive to downsize the federal government.