IRS Buyout Restrictions Impacting Employees During 2025 Tax Season

IRS Buyout Restrictions Affecting Tax Season Employees

A letter from the Internal Revenue Service (IRS) has informed employees that individuals engaged in the 2025 tax season cannot accept the buyout offered by President Trump until after the tax filing deadline. This situation arises primarily for those in critical roles within Taxpayer Services, Information Technology, and the Taxpayer Advocate Service, who are essential during this period, as reported by The Associated Press.

Buyout Offer and Filing Deadline

• Central filing season positions are exempt until May 15 from the buyout plan.
• Taxpayers have until April 15 to file their taxes unless granted an extension.
• Federal workers had a tight deadline to declare their interest in the buyout.

Employees opting for the buyout will cease work while continuing to receive a paycheck and benefits through the end of September. However, the duration of pay for IRS workers remains uncertain, with questions regarding if they will receive five or eight months compared to other federal employees.

Impact of Budget Increases and Hiring Challenges

In 2023, the IRS was allocated $80 billion from the Inflation Reduction Act, aiming to bolster staffing and improve taxpayer services. Despite this, the agency's workforce was 20% lower than in 2010, intensifying the need for hiring and retention.

• IRS expects to relocate personnel to manage tax filing demands due to workforce impact from buyouts.
• Former Commissioner Charles Rettig warns that operations will be significantly impacted by hiring freezes.

Rettig acknowledged the resiliency and capability of IRS employees to work effectively with limited resources during these trying times.