The Internal Revenue Service (IRS) has announced a delay in the voluntary resignation program for employees in key filing season positions, extending their tenure until May 15, 2025. This decision, communicated to staff on February 5, impacts personnel within Taxpayer Services, Information Technology, and the Taxpayer Advocate Service.
The voluntary resignation program, initiated under the Trump administration’s Deferred Resignation Program (DRP), allows federal employees to resign immediately while continuing to receive full pay and benefits through September 30. However, the IRS has deemed certain roles critical to the upcoming tax season, requiring employees in these positions to remain on duty until at least May 15. Those in affected roles who have already accepted the DRP offer will receive further instructions regarding their return to work.
The move has drawn criticism from Doreen Greenwald, president of the National Treasury Employees Union (NTEU). Greenwald argued that the administration’s action underscores the essential nature of IRS employees and highlights the potential disruption to vital services upon which Americans rely. “By requiring IRS employees to stay on the job longer than promised,” Greenwald stated, “the administration is proving that IRS employees are essential and that without them, the jobs that the American people depend upon will not get done.”
This development coincides with a hiring freeze implemented by the President, which has resulted in the cancellation of job offers with start dates after February 8 or with unconfirmed start dates. The tax filing season officially commenced on January 27, under the leadership of Acting Commissioner Doug O’Donnell, following the resignation of former Commissioner Danny Werfel on January 20. The President has nominated former Missouri Congressman Billy Long to fill the commissioner role.
The IRS faces a confluence of challenges this tax season, including a delayed resignation program, a hiring freeze, and a leadership transition. In this dynamic environment, taxpayers and businesses alike must remain vigilant in ensuring compliance with evolving tax regulations. Navigating these complexities can be demanding, and seeking professional guidance can be beneficial.
Virtue CPAs offers a range of tax and accounting services designed to support individuals and businesses through these transitions. Our experienced team helps with tax preparation, planning, and representation, as well as essential accounting services. We’re committed to helping you understand and adapt to the current tax landscape. For more information on how we can assist you, contact us.