In Washington, IRS employees preparing for the 2025 tax season have received directives preventing them from accepting buyout offers from the current administration until after the tax filing deadline. An internal letter addressed to IRS staff clarified that essential roles in Taxpayer Services, Information Technology, and the Taxpayer Advocate Service will be exempt from the buyout program until May 15, while taxpayers are expected to file their returns by April 15 unless they seek an extension.
This news follows President Trump’s recent announcement about a buyout initiative aimed at reducing the federal workforce rapidly. Under this proposal, a “deferred resignation program” allows federal employees to resign while still receiving their salaries until September 30, provided they accept the buyout by the deadline of February 6. The initiative extends to approximately 2.3 million federal employees, though it does exclude certain groups such as military personnel, U.S. Postal Service employees, and immigration enforcement staff. It remains uncertain what compensation IRS workers would receive if they opted for the buyout, whether five months or the full eight months of pay.
As of November, the federal workforce includes upwards of 3 million individuals, comprising nearly 1.9% of the entire civilian labor pool in the country, based on findings by the Pew Research Center. Doreen Greenwald, the president of the National Treasury Employees Union, has warned federal employees against accepting this buyout, suggesting it poses financial risks.
Greenwald expressed her concerns, stating, “This is not a good deal for them. If you sign this document and then later change your mind, you are left without any power to fight back.” She highlighted that federal agencies are currently operating under a continuing resolution, which funds the government until March. Furthermore, with the Anti-Deficiency Act placing restrictions on agency spending beyond allocated appropriations, she noted that the funding for the buyout program has not been secured.
Greenwald advised caution, emphasizing that individuals should maintain control over their careers rather than surrender it through the buyout agreement. The NTEU represents around 150,000 employees across 37 federal agencies and departments, advocating for skilled and experienced workers who are vital to serving the public effectively.
With the 2025 tax season set to commence officially on January 27, the IRS projects that over 140 million tax returns will be submitted by the April 15 deadline. Greenwald stressed the importance of the federal workforce, reminding the public that, “85% of the federal workforce works outside of D.C. They’re your neighbors, your family, your friends. And they deliver key services for the American people.”
