Inland Revenue has started consultations on plans to slash its workforce and begin restructuring.
Last year IRD revealed plans to cut 1500 staff between 2018 and 2021 as part of a cost-reduction and modernisation programme.
The Herald understands staff meetings were held today to begin the official consultation period.
Last year IRD released a report into its plans to modernise its systems.
Up to 30 per cent of the workforce was set to be cut, it said.
New systems meant customers could expect less time contacting the company, with less human interaction, clearer and simpler digital services and tax transactions through accounting software.
IRD said today it would be restructuring into three new groups - one covering individual taxpayers, families and micro business customers, a second covering small, medium and significant business taxpayers, and an information and intelligence services group.
Staff consultation on the changes ends on May 29.
Inland Revenue Commissioner Naomi Ferguson said there had been a "comprehensive programme of communications" about the changes over the past year.
"A lot of support is being offered to staff to help them make the changes and be part of the new organisation," she said.
IRD was also investing "a great deal" in staff training.
"The proposed new structure is all about bringing Inland Revenue closer to customers by organising our front line services around them.
"We need to be much more closely aligned with both the domestic and business lives our customers lead and this new structure reflects that."