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IRS Violated Its Procedures in Mass February Firings, Watchdog Finds

The report intensifies scrutiny of workforce cuts that could weaken tax enforcement and technology upgrades.

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Overview

  • Treasury’s inspector general said termination letters cited performance even though the IRS did not assess individual performance when selecting probationary employees for removal.
  • TIGTA reported that 51% of the 7,315 probationary employees who received notices had no rating on record and the rest were rated fully successful or better.
  • IRS and Treasury leaders restored probationary staff to full work status in May, yet a July Supreme Court ruling allowed broader reductions-in-force to proceed.
  • Some IRS units, including information technology, received exemptions for filing season needs, but nearly 50 IT executives were cut and the business IT division has shrunk by roughly a quarter since the start of the administration.
  • Unions signaled legal challenges to the terminations, though it remains unclear whether TIGTA’s findings create direct legal vulnerability for the administration.