The Internal Revenue Service (IRS) has cancelled plans to pursue further Reductions in Force (RIFs), has rescinded previously approved deferred resignations, and is asking some terminated employees to return, in an effort to fill gaps in “mission-critical expertise.” The agency is seeking to rebuild parts of its workforce, plug staffing holes with rehiring, and reassignments. This is a major shift, as the IRS has been reduced by approximately 26,000 employees – or 25 percent of its staff – since January, and had previously planned to use RIFs to bring its workforce below 60,000 employees.

Acting IRS Human Capital Officer David Traynor and acting Deputy IRS Chief Human Capital Officer David Allen informed staff in an email, writing, “IRS has identified areas where staffing reductions created a potential gap in mission critical expertise. As a result, IRS will utilize all available tools – including details, reassignments, DRP/TDRP recissions, external hiring – to identify resources to fulfill the mission-critical skill sets.”

Given all of the tax provisions included in the “One Big, Beautiful Bill,” the IRS faces a steep challenge to enable its workforce and IT systems to prepare for and implement the changes to the tax code. We reported last month about the concerns expressed by multiple former IRS commissioners regarding the toll the new provisions will put on the regrettably depleted IRS workforce. The administration’s enlightenment on staffing at the IRS is a welcome development.

The IRS has begun posting job openings on USAJOBS; the government-wide hiring freeze is still officially in effect, extended through October 15.