The question of "how many IRS employees will be fired" is complex, dynamic, and subject to various factors including political shifts, budget allocations, performance evaluations, and misconduct. It's not a static number but rather an ongoing process influenced by policy and internal accountability.
Let's dive into a step-by-step understanding of the mechanisms that lead to IRS employee separations, whether through firings, resignations, or other workforce reductions.
Step 1: Understanding the Landscape – Why Does the IRS Workforce Change?
Hey there! Have you ever wondered what goes on behind the scenes at a massive government agency like the IRS? It's not just about audits and tax forms; it's also about a huge workforce, just like any large corporation, with its own set of rules, performance expectations, and yes, even employee departures.
The IRS workforce is subject to a variety of pressures and policies that can lead to employees leaving the agency. These aren't always "firings" in the traditional sense, but can include voluntary separations, probationary terminations, and, in specific cases, dismissals for misconduct.
Sub-heading: The Dual Pressures: Budget & Accountability
On one hand, the IRS, like all federal agencies, operates under budgetary constraints and political directives. Recent years have seen significant fluctuations in funding, which directly impacts staffing levels. On the other hand, there's a strong emphasis on accountability and integrity within the agency, especially given its sensitive role in tax administration. This means employees are held to high standards, and failure to meet those standards can lead to disciplinary action, up to and including termination.
How Many Irs Employees Will Be Fired |
Step 2: The Legal Framework for Terminations: Section 1203
When it comes to actual firings for specific misconduct, a key piece of legislation comes into play: Section 1203 of the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 98). This act mandates the termination of IRS employees for certain severe acts or omissions.
Sub-heading: What Does Section 1203 Cover?
Section 1203 outlines ten specific acts or omissions that, if committed by an IRS employee in the performance of their official duties and confirmed through a final administrative or judicial determination, require their termination. These include, but are not limited to:
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- Willful failure to obtain required approval signatures on documents authorizing the seizure of taxpayer assets (home, belongings, business assets).
- Providing a false statement under oath regarding a material matter involving a taxpayer or representative.
- Violations of constitutional or civil rights of taxpayers, representatives, or other IRS employees.
- Falsifying or destroying documents to conceal mistakes made by an employee regarding a taxpayer.
- Assault or battery on a taxpayer, representative, or IRS employee (with a criminal conviction or civil court judgment).
- Violations of the Internal Revenue Code or IRS policies for the purpose of retaliating against or harassing a taxpayer or employee.
- Willful misuse of Section 6103 (taxpayer confidentiality) to conceal information from a congressional inquiry.
- Willful failure to file any required tax return on or before the due date (unless due to reasonable cause, not willful neglect).
- Willful understatement of Federal tax liability (unless due to reasonable cause, not willful neglect).
It's important to note that for many of these, willfulness is a key element, meaning the act was committed with intent.
Step 3: Beyond Misconduct: Broader Workforce Reductions
While Section 1203 deals with mandated firings, the IRS workforce size is also affected by broader government-wide initiatives and internal agency decisions. These can lead to significant reductions in employee numbers, which, while not "firings for cause," still result in employees leaving their positions.
Sub-heading: Voluntary Separations and Buyouts
In an effort to reduce the federal workforce, programs like the Deferred Resignation Program (DRP) and Voluntary Separation Incentive Payments (VSIP) are sometimes offered. These programs allow employees to voluntarily resign or retire, often with incentives, and are a way for the agency to reduce its headcount without resorting to involuntary layoffs or firings for cause. For instance, in early 2025, over 11,000 IRS employees were either approved for DRP or received termination notices during their probationary period.
Sub-heading: Probationary Employee Terminations
New federal employees often serve a probationary period. During this time, they can be terminated more easily than permanent employees, often without the same extensive appeal rights. Recent reports indicate that thousands of probationary IRS employees have received termination notices as part of workforce reduction efforts. This is a significant factor in overall employee departures.
Sub-heading: Reductions in Force (RIFs)
In some instances, the IRS may implement Reductions in Force (RIFs), which are essentially layoffs based on factors like job series, performance, and seniority, typically in response to budget cuts or strategic realignments. While less common than voluntary programs, RIFs can lead to substantial employee departures.
Step 4: The Numbers Game: How Many are "Fired" or Depart?
Pinpointing an exact, constant number of "fired" IRS employees is difficult because the figures fluctuate based on the type of separation (misconduct vs. voluntary reduction), the reporting period, and ongoing policy changes.
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Sub-heading: Misconduct-Related Firings
According to reports from the Treasury Inspector General for Tax Administration (TIGTA), a body that oversees the IRS, a certain number of employees are indeed removed each year for violations of Section 1203. For example, between October 2021 and April 2023, 70 employees were identified with substantiated willful Section 1203(b)(8) or (b)(9) violations (willful failure to file or willful understatement of taxes), and 20 were removed as a result. It's important to note that while the law requires removal for these violations, the IRS Commissioner retains some discretion.
Historically, TIGTA reports have highlighted instances where the IRS has retained employees who committed serious misconduct, including tax violations, sometimes even awarding them bonuses or promotions. This has been a point of contention and calls for greater accountability.
Sub-heading: Overall Workforce Reductions
Looking at the broader picture of employee departures:
- As of March 2025, more than 11,000 IRS employees either accepted the Deferred Resignation Program (DRP) or received termination notices during their probationary period. This represents approximately 11% of the IRS's workforce at that time.
- Further voluntary separation programs were offered in April 2025, with over 23,000 employees applying for the Treasury Deferred Resignation Program (TDRP), and 13,124 approved as of April 22, 2025.
- These cuts have disproportionately affected certain job series, such as revenue agents, with approximately 31% separating.
These numbers illustrate a significant shift in the IRS workforce, driven by a combination of government directives to reduce federal employment and internal restructuring.
Step 5: The Impact and Outlook
The reduction in the IRS workforce, whether through firings for misconduct or broader separation programs, has significant implications for the agency's operations and its ability to serve taxpayers and enforce tax laws.
Sub-heading: Consequences of Staffing Changes
- Reduced Capacity: Fewer employees, particularly in critical areas like enforcement and taxpayer services, can lead to a reduced ability to collect taxes, combat tax evasion, and provide timely assistance to taxpayers.
- Loss of Institutional Knowledge: Experienced employees departing can result in a loss of valuable expertise and institutional knowledge, impacting the efficiency and effectiveness of the agency.
- Modernization Challenges: Workforce cuts can complicate the IRS's ongoing efforts to modernize its technology and systems, as skilled personnel are crucial for building and maintaining these advancements.
The ongoing focus on accountability means that employees who violate specific rules, especially those involving willful tax non-compliance or mistreatment of taxpayers, will face termination. Simultaneously, the broader economic and political climate will continue to influence overall IRS staffing levels through mechanisms like voluntary separations and, potentially, further RIFs.
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10 Related FAQ Questions (Starting with 'How to')
Here are some quick answers to common questions about IRS employee departures:
How to: Define "Fired" in the Context of IRS Employees?
"Fired" typically refers to involuntary termination for cause, such as misconduct or poor performance. However, significant workforce reductions at the IRS can also occur through voluntary programs (like buyouts) or probationary terminations, which, while not "firings for cause," still result in employees leaving the agency.
How to: Determine if an IRS Employee was Fired for Misconduct?
Specific instances of IRS employee firings for misconduct are often detailed in reports from the Treasury Inspector General for Tax Administration (TIGTA), particularly those related to violations of Section 1203 of the IRS Restructuring and Reform Act of 1998. These reports are publicly available.
How to: Know the Specific Reasons for IRS Employee Terminations under Section 1203?
Section 1203 outlines 10 specific acts or omissions, including willful failure to file taxes, willful understatement of tax liability, falsifying documents, and violating taxpayer rights. These are the mandatory grounds for termination if a violation is substantiated.
How to: Find Statistics on IRS Employee Firings?
Statistics on IRS employee firings for misconduct, as well as broader workforce reductions, are regularly published in audit reports by the Treasury Inspector General for Tax Administration (TIGTA). The IRS also provides data on its budget and workforce in its annual Data Book.
How to: Understand the Impact of Budget Cuts on IRS Staffing?
Budget cuts can lead to reduced hiring, fewer resources for training, and potentially the implementation of voluntary separation programs or Reductions in Force (RIFs), all of which decrease the overall number of IRS employees.
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How to: Distinguish between a Firing and a Voluntary Separation?
A firing is an involuntary termination initiated by the employer due to misconduct, poor performance, or other disciplinary reasons. A voluntary separation (like a buyout or deferred resignation) is when an employee chooses to leave their position, often with incentives, as part of a workforce reduction effort.
How to: Appeal an IRS Employee Termination?
Federal employees, including those at the IRS, typically have appeal rights through avenues like the Merit Systems Protection Board (MSPB) if they believe their termination was unlawful or unjustified, particularly after their probationary period.
How to: View the IRS's Hiring Plans?
The IRS periodically announces its hiring goals and initiatives, often in conjunction with its budget requests and strategic operating plans. These are usually outlined in official IRS press releases and Treasury Department documents.
How to: Learn about the "Deferred Resignation Program" at the IRS?
The Deferred Resignation Program (DRP) and similar initiatives (like the Treasury Deferred Resignation Program - TDRP) are voluntary separation programs offered to federal employees, including those at the IRS, allowing them to resign while retaining pay and benefits for a specified period. Details are usually released by the Office of Personnel Management (OPM) and TIGTA.
How to: Access Official Reports on IRS Employee Conduct?
Official reports on IRS employee conduct, misconduct, and disciplinary actions, including those related to Section 1203, are produced and published by the Treasury Inspector General for Tax Administration (TIGTA) on their website.