The IRS stunned the nation with its last-minute announcement one day before the federal tax filing deadline. This new announcement suddenly came out of the blue after the severe staffing changes were implemented earlier this year. Some certainly celebrated the last-minute announcement, but the celebrations may only be temporary, as a planned reduction-in-force is still looming in the shadows. Today, we will discuss how this announcement will influence taxpayers and IRS employees.
The last-minute announcement by the IRS has people buzzing
We can only imagine the mixed feelings you must have after being laid off and then hearing a few weeks later that you have been reinstated – someone would be receiving an extremely long letter of complaint from us, that’s for sure! This is what happened to 6,600 probationary IRS employees laid off earlier this year. Per court orders, they were informed on April 2 to report to their distinctive offices one day before the federal tax filing deadline.
The Trump administration appealed to the two court rulings made in separate federal court decisions in Maryland and California, placing the workers on paid administrative leave awaiting further instruction. Per the IRS’s email to the reinstated employees, they would receive instructions on acquiring ID credentials, IT equipment, and workspace assignments before April 14. The IRS also reportedly announced that temporary telework arrangements may be offered due to limited space.
According to Bloomberg, not all employees chose to return to work (we wonder why) and were asked to formally resign via internal IRS channels.
Employees are being laid off for these reasons
As we mentioned earlier, this last-minute announcement only brought temporary joy because the Trump administration still plans to proceed with the 18% cut of the IRS workforce. As reported by ABC News, the IRS initiated a new round of layoffs earlier in April, beginning with the agency’s Office of Civil Rights and Compliance, and reportedly plans to lay off nearly a quarter of its workforce.
The 18% workforce cut will be implemented in phases, including deferred resignations, probationary terminations, and a planned reduction-in-force (RIF) by May 15. Trevor Norris, the deputy assistant secretary for human resources at the Treasury Department, confirmed that reinstated entry-level workers would be inordinately affected by the planned RIF. Early retirement packages will be offered as incentives.
The effects it may have on the IRS
The IRS administers tax-related stimulus checks and refunds, making staffing stability essential during tax season. Since January, many senior IRS leaders, including the chief human resources officer, acting commissioner, and acting general counsel, have resigned or been demoted.
Andrew Blair-Stanek, a Law professor at the University of Maryland, Baltimore’s Francis King Carey School of Law, said in a statement to Newsweek that the reinstated employees were not brought back to assist with the filing season. He believes the court rulings declared the mass firings violated due process and civil service laws and that DOGE and DOGE-aligned IRS officials will soon re-fire the reinstated employees and many more by following proper procedures.
This last-minute announcement by the IRS certainly means good and bad news, especially with the RIF looming in the shadows. To stay updated on the latest announcements on Budget and Workforce from the IRS, visit the official IRS website.