IRS to Lose 20% of Workforce to New Trump Resignation Offer (1)

About 20,000 IRS workers—roughly one-fifth of the agency—are taking the Trump administration’s second deferred resignation offer, according to a person familiar with the matter.

That uptake effectively reverses the staff hikes that came with the Democrats’ tax-and-climate law and accomplishes in one fell swoop the upwards of 25% cuts proposed by billionaire Elon Musk’s so-called efficiency advisers.

The second offer comes as the IRS has already started its formal reduction-in-force plan earlier this month. The IRS had about 100,000 workers at the beginning of this year.

The deal allows for employees to be on paid administrative leave through Sept. 30, giving another incentive for workers to leave and help the administration’s efforts to shrink the federal workforce. The deadline for workers to take the offer was April 14 and employees that take the offer could leave as soon as April 28, according to an email seen by Bloomberg Tax.

Guidance from the Office of Management and Budget also advised that those who are 40 years old and older must be given 45 days to consider the resignation offer. Thousands that took the offer are in that age group and may use it as insurance in case they get fired as part of the reduction in force, the person said.

At least three high-level IRS officials have taken the deferred resignation offer, including acting commissioner Melanie Krause.

About 4,700 employees took the first deferred resignation offer. Most of the roughly 7,300 IRS probationary employees are also on administrative leave after the agency halted their return because of a favorable court ruling.