The IRS is in the middle of a major restructuring plan, aimed at slashing its workforce by up to 40%. However, things are far from running smoothly. Recently, the IRS senior leadership revealed that the expected bi-weekly layoff notices, known as Reduction in Force (RIF) notices, have been delayed due to “issues” and “glitches” in the system.
The IRS started this year with a workforce of 102,000 employees, but that number is now being whittled down to somewhere between 60,000 and 70,000 as part of the cost-cutting measures. The plan was for these RIF notices to begin rolling out last week, but several employees across different IRS offices told Federal News Network that the notices, which were expected to be distributed last Friday, simply didn’t go out.
One reason for the delay could be related to the ongoing administrative shifts within the IRS. Melanie Krause, an acting IRS commissioner, left the agency earlier this month following a controversy surrounding a deal to share immigrant tax data with Immigration and Customs Enforcement (ICE). Additionally, Doug O’Donnell, another acting IRS commissioner, retired in February, leaving the agency without stable leadership at the top.
Adding to the chaos, a new report suggests that Gavin Kliger, a Department of Government Efficiency (DOGE) official, had his building and systems access revoked by the IRS. Kliger had played a significant role in the workforce reduction efforts and the firing of employees at other agencies like the Consumer Financial Protection Bureau. These moves have raised concerns about the overall management of the layoffs and the integrity of the process.
Meanwhile, the IRS did offer some employees a “deferred resignation offer,” allowing them to take paid administrative leave through the end of the fiscal year. The deadline for most Treasury and IRS employees to accept this offer was April 14. However, employees over the age of 40 were given an extended 45 days to make their decision, in compliance with the Older Workers Benefit Protection Act.
More than 20,000 IRS employees took up the deferred resignation offer, but there are complications. A significant number of workers, especially those in critical operational roles, have been blocked from accepting the offer. Reports suggest that up to 1,700 employees in the IRS’s Large Business and International (LB&I) division were denied the opportunity to leave. These employees, including probationary workers, were among those fired earlier this year. The IRS has been strict about denying these offers to people in certain enforcement positions, though the exemptions are not uniformly applied across the board.
To make matters worse, there’s evidence that not all employees have been given equal opportunities. Of the 20,000 employees who applied for the deferred resignation offer, Bloomberg Tax reported that roughly 10%, around 2,100 people, have had their requests denied.
This delay in layoffs has caused frustration for both employees and the public, raising questions about the handling of the IRS’s workforce cuts. As the situation continues to develop, many are left wondering if these “glitches” are the sign of deeper issues within the IRS or just a temporary hurdle in a larger restructuring plan.
