The IRS is telling some employees who have requested to take the latest deferred resignation offer from the Treasury Department that they’re ineligible because their positions within the tax agency are “deemed critical.”
Bloomberg Tax reported Friday that about 2,100 of the approximately 20,000 employees who applied for the offer at the IRS were denied.
An email sent to impacted employees, which was seen by CPA Practice Advisor, says, “Upon review, because your position has been deemed critical, you are therefore ineligible for the Treasury Deferred Resignation Program (TDRP) at this time.”
Based on information provided to CPA Practice Advisor by a source, as well as information posted by IRS employees on Reddit, both probationary and non-probationary employees at the agency have had their deferred resignation offer requests rejected. One IRS employee, who’s not a probationary worker and was told they’re ineligible, said online that they’re a revenue agent in the Large Business and International Division, which is responsible for tax administration activities for domestic and foreign businesses.
- Related article: IRS Updates RIF Plans, Could Lay Off Up to 40% of Workforce
- Related article: Roughly 20,000 IRS Workers Have Requested DRP 2.0 Offer, Reports Say
- Related article: IRS Workers Faced a Resignation Deadline as Americans Rushed to File Their Taxes
- Related article: IRS Probationary Employees Told Not to Come Back to Work on April 14 After All
- Related article: IRS Workers Get Final Chance to Take Deferred Resignation Offer
The following is the text of an email an IRS probationary employee who was denied the second deferred resignation program (DRP 2.0) offer received yesterday:
The Chief Tax Compliance Office leadership has reviewed its program areas and identified key positions critical to the delivery of the mission. You have been identified as a probationary employee in a key IRS service, enforcement or operations support area who is being recalled to full duty status. Next week, you will receive instructions on obtaining a PIV [Personal Identity Verification] Card and IT equipment, workspace assignments and temporary telework where space is not available, in addition to information on outside employment.
Upon review, because your position has been deemed critical, you are therefore ineligible for the Treasury Deferred Resignation Program (TDRP) at this time.
Today, you will receive a system notification from noreply@servicenow.treasury.gov advising you that your TDRP request has been denied due to your current ineligibility. These key positions will be re-assessed in the future and, if circumstances change that permit your participation in TDRP, we will notify you.
If you have already submitted a retirement application in the GRB platform and wish to rescind your retirement, please email separation@irs.gov requesting your application be rescinded.
If you have any questions or concerns, please reach out to your management.
Another interesting tidbit from this email is that probationary employees, who have been on paid administrative leave since March, have been asked to come back to work if their job is deemed critical. Many are concerned that the IRS will deny their DRP 2.0 only to lay them off in its reduction in force (RIF) plans.
“Our positions are ‘critical’ now but weren’t ‘critical’ back when they illegally fired us in February? How convenient for them,” said an IRS probationary worker.
Approximately 6,700 IRS workers—mostly newer probationary employees who have fewer protections than long-term workers—were laid off by the Trump administration on Feb. 20. However, impacted workers were later reinstated and put on paid administrative leave last month after two favorable court rulings. They were set to return to work on April 14, but that plan was put on hold by the IRS.
“I know at least some of the [probationary workers] in my group have already found new jobs,” one IRS employee wrote on Reddit. “Absolute insanity to fire them all, close most of their cases, and then bring them back on.”
About one-fifth of the IRS workforce has requested to take the DRP 2.0 offer to be put on paid administrative leave through the end of September.
Roughly 20,000 IRS employees requested to take the deferred resignation offer before the deadline concluded on April 14, but many are still waiting for the contracts to be released so they can sign the offer. And some now have already had their offer requests denied.
Under the terms of DRP 2.0, employees who take the deal will be put on paid administrative leave through Sept. 30 and then leave their federal jobs.
IRS workers eligible for DRP 2.0 could start paid administrative leave as early as April 28, and “generally no later” than June 2, said an email sent to Treasury Department employees earlier this month.
The combination of deferred resignation offers being accepted and RIFs could result in the IRS workforce being gutted by up to 40% over the coming months.
An internal memo this week said the IRS workforce, which sat at approximately 100,000 when President Donald Trump took office on Jan. 20, could be reduced to as little as 60,000 to 70,000 employees.
The RIFs, which are also happening at other federal agencies, are part of the Trump administration’s plan to cut wasteful spending and downsize the federal government.
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Stephanie L Brooks April 18 2025 at 8:03 pm
We have seen a lot of inaccuracies in the news. This article appears to be accurate. Thank you.