The IRS will bring back approximately 7,000 probationary employees it had recently fired, following two major federal court rulings that found the mass terminations were improperly coordinated across multiple agencies.
Acting IRS Commissioner Melanie Krause confirmed that reinstated employees will be allowed to return to work by April 14, just one day before the national tax filing deadline. The announcement came via a conference call and follow-up emails sent directly to affected staff.
“You are receiving this email as one of approximately 7,000 probationary employees who were separated from service and have been reinstated in compliance with recent court orders,” the email read.
Employees are currently on paid administrative leave but are being prepped for re-entry into the workforce. They’ll soon receive instructions for collecting their PIV cards, IT equipment, and workstations. In situations where office space is not yet available, the IRS will permit temporary telework arrangements.
Employees who no longer wish to return have been asked to voluntarily resign. The IRS emphasized that outside employment doesn’t automatically disqualify returning workers, provided they disclose it and receive approval.
The legal intervention stems from decisions made in February, when the Office of Personnel Management (OPM) orchestrated sweeping probationary firings across at least 17 federal agencies. Two federal judges, William Alsup in California and James Bredar in Maryland, issued injunctions demanding the reinstatement of these employees.
Judge Alsup criticized agencies for placing workers on indefinite administrative leave instead of returning them to active duty. “This is not allowed by the preliminary injunction,” he wrote. Union leaders have urged the courts to consider contempt actions if agencies continue to stall.
Bredar’s latest ruling now applies to employees in 19 states and the District of Columbia, tightening an earlier nationwide directive.
Some reinstated employees are skeptical about the move, calling the administrative leave a “paycheck pause” while they job hunt. Others worry about getting rehired only to be terminated again after tax season.
The IRS is reportedly planning a reduction in force (RIF) by May 15, once the busy filing season concludes. Sources estimate the agency aims to cut up to 20% of its workforce, down from earlier rumors of a 50% slash. So far, around 11,000 to 12,000 employees have already been let go, roughly 11-12% of the agency’s staff as of September 2024.
Union officials and retired IRS veterans have expressed concern that further cuts could reverse hard-won gains in customer service. Kelley Reyes, executive director of the Professional Managers Association, warned the agency “cannot afford to lose the experienced and specialized people that they have developed.”
Retired IRS manager Jeff Eppler noted that while tax return processing hasn’t yet collapsed under pressure, a post-April 15 layoff wave could damage service for those filing later.
As of now, the IRS says it is doing everything possible to remain compliant with the court’s orders. But for many inside the agency, this back-and-forth over jobs and legal interpretations has only deepened a sense of uncertainty about the future.
