Almost 20,000 IRS Employees Participate in Trump’s Second Buyout Offer

Impact of Trump's Second Buyout Offer on IRS Operations

Almost 20,000 employees at the Internal Revenue Service (IRS) are opting for the Trump administration’s second deferred buyout offer, as reported by Bloomberg. This staggering number equates to one-fifth of the agency's total workforce. Earlier this year, approximately 4,700 individuals accepted the first buyout offer, with an additional nearly 7,000 probationary staff currently on administrative leave. As directed under Trump’s administration and in alignment with Elon Musk's Department of Government Efficiency (DOGE), the IRS has begun its reduction-in-force strategy.

Tax Deadline Complications

Concurrently, this report arrives on the same day as the IRS taxpayer deadline, heightening concerns over operational capacity. Employees were instructed that participation in the buyout would prevent them from aiding in the upcoming 2025 tax season, necessitating their wait until after the deadline.

Future Prospects

Those accepting the buyout will cease working but will maintain their paychecks and benefits until the end of September. This strategic decision is part of DOGE's broader initiative to curtail federal expenditure. In response to dwindling staffing levels, the IRS plans to reassign workers from various sectors to support during rigorous tax periods.

Notably, under the Biden-era Inflation Reduction Act, the IRS was allocated $80 billion to enhance its staffing and operational effectiveness. However, the ongoing buyouts significantly undermine this staffing growth, as highlighted by Bloomberg. Furthermore, several high-ranking IRS officials have already taken the buyout, including Acting IRS Commissioner Melanie Krause and her predecessor, Douglas O’Donnell. Their departures follow the exit of Danny Werfel, a Biden appointee, on the day Trump assumed office.