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The IRS is at the center of attention as the government’s buyout program for federal employees raises concerns regarding the 2025 tax season. According to a letter issued to IRS employees, those involved in the critical filing season, including staff from Taxpayer Services, Information Technology, and the Taxpayer Advocate Service, will be prohibited from accepting buyouts until after May 15. This restriction is in place because the IRS plays a crucial role in managing the massive flow of tax filings during this period, which ends on April 15.
The Buyout Program and Its Timing
On February 6, President Donald Trump’s administration announced a buyout plan for federal employees to reduce the government workforce. This plan, which is part of a broader initiative to streamline federal operations, would allow employees to accept voluntary buyouts and leave their positions while still receiving their paychecks until September 30. The buyouts apply to all full-time federal employees, with a few notable exceptions, such as military personnel and U.S. Postal Service workers.
While the buyout offers flexibility to federal employees, IRS workers, specifically those directly involved in the 2025 tax season, are not allowed to take the offer until after the filing season concludes. Taxpayers are required to file their taxes by April 15, unless they qualify for an extension. This ensures that there will be no shortage of personnel during the peak of the tax season, which is expected to see over 140 million returns.
Union Concerns and Criticism
Union leaders and worker advocates, particularly the National Treasury Employees Union (NTEU), have strongly criticized the buyout plan. Doreen Greenwald, the union president, has advised federal workers not to accept the offer, suggesting that it is not in their best interest. One of her main concerns is that employees who sign up for the buyout may later regret their decision, as they would lose the flexibility to change their mind and might find themselves with limited options.
Greenwald has also pointed out that the funding for the buyout program has not been approved yet. Since the government is operating under a continuing resolution, the budget for new spending measures, including the buyout, is still pending. This raises questions about whether the buyout program can even be fully implemented.
Impact on IRS Services and Federal Workforce
The IRS already faces challenges due to an understaffed workforce. With the 2025 tax season fast approaching, the IRS cannot afford to lose experienced employees, as it needs to handle the expected 140 million tax returns. Greenwald emphasized that IRS employees provide essential services to American taxpayers and that losing experienced staff during such a critical period could harm the efficiency and effectiveness of tax services.
The union president also highlighted that a significant portion of the federal workforce—85%, to be precise—works outside Washington, D.C., and provides essential services to people across the country. The IRS, being one of the largest employers in the federal government, depends on these skilled workers to ensure smooth tax processing.
A Critical Decision for IRS Employees
IRS employees now face a tough choice. While the buyout program may seem tempting, union leaders strongly advise against signing up. They argue that IRS workers should maintain control of their careers and ensure that the federal services, particularly tax-related services, continue to meet the needs of the public.
With the 2025 tax season beginning on January 27, the IRS has little time to lose. As the April 15 deadline approaches, it remains to be seen how many IRS employees will choose to stay or leave and what effect the buyout program will have on the IRS’ ability to manage the filing season effectively.
