HM Revenue & Customs is to close all 170 of its offices as it seeks to move to a model of 13 regional hubs.
The Telegraph reports the move will put thousands of the Revenue’s 56,000 staff at risk of redundancy, although a spokesman declined to comment.
The tax office is briefing staff on the changes today.
The changes come after HMRC chief executive Lin Homer told MPs that the service was looking to move more services online.
Homer told the Treasury committee on Tuesday that HMRC was “very apologetic” for failing to answer as many as half of calls received from taxpayers between April and July.
HMRC is not a ring-fenced department and will be subject to Chancellor George Osborne’s spending review set to be announced on 25 November.