IRS Reverses Layoffs, Recalls Hundreds to Fill Critical Vacancies

The IRS is reversing its earlier workforce reduction efforts under President Trump's administration after losing over 25% of its employees, roughly 26,000 workers, through deferred resignation programs and other incentives. The agency has identified critical staffing gaps that could jeopardize the upcoming tax filing season, prompting IRS leadership to begin rescinding deferred resignation offers and recalling some employees, particularly in mission-critical roles. An internal email from IRS human capital officials confirmed the use of all available tools, including reassignments, external hiring, and rescinding deferred resignation agreements, to address these gaps. Employees who accepted deferred resignation offers will be contacted with the option to return, although employee-initiated rescissions are not being accepted at this time. This policy shift follows warnings from IRS watchdogs and the National Taxpayer Advocate about the risks of understaffing, and the Treasury Department has emphasized its commitment to staffing the IRS appropriately to implement President Trump's agenda effectively. The IRS is also halting planned layoffs and has restarted hiring to stabilize its workforce amid leadership turnover and operational challenges.