Reports indicate that thousands of probationary employees who were let go earlier this year from the Internal Revenue Service (IRS) have been instructed to return to work by April 14, just one day prior to the federal tax filing deadline.
Newsweek has reached out to the IRS for a statement outside of standard working hours.
Why This Matters
The IRS is crucial for managing tax-related stimulus payments and refunds, making consistent staffing essential throughout the tax season.
However, the reemployment of these workers is clouded by potential workforce reductions. According to Bloomberg Tax, earlier proposals from the Trump administration suggested an overall 18 percent reduction in the IRS’s workforce.
This reduction would be implemented through a phased approach, 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, mentioned in court documents that reinstated employees without seniority would be at a greater risk in the imminent RIF.
Patrick Semansky/AP
Key Information
Approximately 7,000 probationary IRS employees were let go in February as part of a broader initiative by the Trump administration to shrink the federal workforce.
However, recent federal court rulings in Maryland and California mandated that these employees be reinstated.
Both decisions were appealed by the Trump administration, and the employees were placed on paid administrative leave until further instructions were issued.
On April 2, the IRS informed them via email to prepare to return to full-time roles by April 14, as reported by Bloomberg.
The email specified that reinstated employees would receive guidance on obtaining ID credentials, IT equipment, and their workspace setups in advance of April 14. Moreover, it was indicated that temporary telework arrangements could be established if workspace is limited.
Meanwhile, employees opting not to return were instructed to resign formally through internal IRS procedures, according to Bloomberg.
Public Reactions
Kelley Reyes, executive director of the Professional Managers Association, remarked in March: “[The IRS] cannot afford to lose the experienced and specialized personnel that they have developed.”
A reinstated employee shared on Reddit, as noted by CPA Practice Advisor: “My coworker mentioned that management believes they might bring us back just to dismiss us on April 15th when the RIFs commence. Another manager contacted me to say it’s possible we could be let go in two months (assuming a 60-day RIF). It’s still preferable to being terminated now, and I’m remaining hopeful. I also hope for another DRP [deferred resignation program]. I have lost faith that they recognize our necessity, though; it’s disheartening.”
Andrew Blair-Stanek, a law professor at the University of Maryland, Baltimore’s Francis King Carey School of Law, stated to Newsweek: “The reinstatement of these probationary employees isn’t intended to assist in the current filing season; it’s simply due to federal judicial rulings determining that the mass firings likely breached due process and civil service regulations. DOGE and DOGE-aligned IRS officials will soon re-dismiss not only these workers but many others. This time, firings will adhere to proper protocols.”
He continued: “These mass layoffs will adversely impact IRS customer service. Moreover, the number of IRS auditors will be drastically reduced. Unfortunately, if you are a wealthy taxpayer or business owner, this could be an excellent year to evade taxes, as the likelihood of being audited will dramatically decrease. Contrarily, if your income derives from wages, salary, or Social Security, and you attempt to evade taxes, longstanding IRS automated systems will promptly identify your infractions.”
Richard D. Pomp, a law professor at the University of Connecticut School of Law, told Newsweek: “The Trump administration is planning significant tax reductions in the near future. The cost savings from downsizing the federal government are essential for funding those tax cuts, along with expected revenue from tariffs. The IRS is among the few agencies that can demonstrate that for every dollar it spends, it generates a substantial return.”
He added: “Reinstating employees, particularly under court orders, helps ensure operations continue as smoothly as possible amid the chaos that has been created. Some former students of mine, who were laid off, have already secured positions with law firms and expressed concern that once the April rush is over, there may be another round of layoffs.”
Looking Ahead
The reinstatement ordered by the courts does not protect employees from the impending workforce reductions scheduled for mid-May.
Norris cautioned in his court filing that restoring certain employees “could create undue disruption” if they are likely to face termination again shortly thereafter.
As the IRS continues to follow downsizing directives from the Department of Government Efficiency (DOGE), the agency’s operations may be stressed well beyond tax season, particularly regarding enforcement and taxpayer services.
As of now, the IRS has not disclosed the number of reinstated workers who will retain their positions beyond May.
Update 04/01/25, 10.15 a.m. ET: This article has been updated with comments from Andrew Blair-Stanek and Richard D. Pomp.
