IRS Workers Who Took Trump Resignation Offer Will Have To Work Anyway

IRS Operations Threatened by Employee Exodus

The Internal Revenue Service (IRS) is facing a significant challenge as it navigates the 2024 tax filing season. The agency’s operations have been disrupted by an unexpected employee exodus, which threatens to undermine its ability to process tax returns efficiently. On January 27, 2025, the day after the IRS began accepting individual tax returns, the Office of Personnel Management (OPM) introduced the Deferred Resignation Program (DRP). This program allowed federal employees to resign from their positions while continuing to receive full pay and benefits until the end of the fiscal year, September 30, 2025. Employees were given until February 6, 2025, to accept the offer.

The DRP was initially met with confusion, particularly regarding whether participants would be required to perform any work during the eight-month period. However, Elon Musk’s Department of Government Efficiency clarified that employees could essentially take a paid vacation or stay home, further fueling the allure of the program. The initial offer exempted certain critical roles, such as military personnel, U.S. Postal Service employees, and those involved in immigration enforcement and national security. Despite these exemptions, the program raised concerns about its impact on the IRS’s ability to manage the tax filing season.

The Deferred Resignation Program

The Deferred Resignation Program (DRP) was introduced as a controversial measure aimed at reducing the federal workforce. By offering employees the option to resign while still receiving pay, the program posed significant implications for the IRS, particularly during the critical tax filing season. The program’s initial ambiguity regarding work expectations was clarified by the Department of Government Efficiency, which suggested that participants could use the time to relax or pursue other activities while still collecting their salaries. This clarification, along with the generous terms of the program, likely influenced many employees to accept the offer.

Exemptions and Reversals

In an apparent effort to mitigate the impact on the IRS during the tax filing season, the agency announced that certain critical positions would be exempt from the DRP. Specifically, employees in Taxpayer Services, Information Technology, and the Taxpayer Advocate Service were no longer eligible to participate in the program until May 15, 2025. This decision, however, raised new questions, particularly for employees who had already accepted the offer and ceased working. These individuals were informed that they would be required to return to work, leaving many uncertain about their status and the terms of their participation in the program.

The National Treasury Employees Union (NTEU), representing IRS employees, expressed strong opposition to the program, calling it a “bait-and-switch” tactic. The union criticized the government for initially offering employees a paid break only to revoke the offer for certain groups, leaving many feeling betrayed and uncertain about their future.

Hiring Freeze and Job Rescissions

The introduction of the DRP coincided with an executive order from President Trump freezing hiring for most federal agencies, including the IRS. This hiring freeze was initially met with confusion, as job openings were abruptly removed from official websites, and candidates who had received job offers found their offers rescinded. The freeze was part of a broader effort to reduce the size of the federal workforce, with the Office of Management and Budget (OMB) tasked with developing a plan to achieve this goal.

President Trump further escalated tensions by suggesting that IRS employees could be fired or reassigned to the border. This rhetoric, while not entirely clear, appeared to be linked to misinformation about IRS hiring plans. The original controversy stemmed from the Inflation Reduction Act, which allocated funds to the IRS to hire 87,000 new employees over a decade. While the hiring was intended to improve taxpayer services and modernize the agency, it was misrepresented as an effort to militarize the IRS, leading to widespread criticism.

Misinformation and Its Impact

The misinformation surrounding the IRS hiring plans has had a lasting impact on public perception and agency operations. The false narrative that the IRS was arming its employees has been repeatedly debunked, but it continues to be used as a political talking point. This misinformation has not only damaged the IRS’s reputation but also contributed to the current staffing challenges, as potential employees may be deterred by the negative publicity.

The combination of the hiring freeze, DRP, and misinformation has created a perfect storm of uncertainty for the IRS. With critical roles exempted from the DRP and hiring frozen, the agency is struggling to maintain adequate staffing levels during the tax filing season. This has raised concerns about the IRS’s ability to process tax returns efficiently and provide timely services to taxpayers.

Chaos and Mistrust Among Employees

The unfolding situation has led to widespread confusion and mistrust among federal employees, particularly those at the IRS. The DRP’s initial appeal was quickly overshadowed by the subsequent exemptions and reversals, leaving many employees feeling misled and uncertain about their futures. The NTEU has been vocal in its criticism of the program, asserting that the government’s actions have created an environment of distrust and instability.

As the tax filing season continues, the IRS faces significant challenges in maintaining operational efficiency. The agency’s ability to adapt to these challenges will be crucial, not only for the success of the current tax season but also for restoring the trust and confidence of its employees and the public. The implications of the DRP, hiring freeze, and ongoing misinformation extend beyond the current crisis, potentially shaping the future of federal workforce management.