An internal watchdog found that the IRS failed to follow its own procedures when it laid off more than 7,000 probationary employees earlier this year as part of the Department of Government Efficiency cuts.
The Treasury Inspector General for Tax Administration (TIGTA) released a report Thursday saying that the 7,315 employees who were let go in February were not given proper notice, and their performance was not taken into account when terminating them, as they were told.
“Internal procedures were not followed when sending the termination notices. Policies and procedures require the IRS to give probationary employees a 30-day notice and consider their performance prior to terminating them,” TIGTA wrote in its 18-page report.
TIGTA noted that the time between identifying employees and issuing notices was only 29 days. All received the same letter citing performance as a reason for termination.
The watchdog found that 3,716 probationary employees had no performance rating on record when terminated. Of the remaining 3,599, 99% were rated “fully successful” or higher, including 305 rated “outstanding” or “exceeded fully successful.” Only 43 were rated below fully successful.
“Termination letters cited performance as a reason for termination; however, the IRS did not consider individual performance when deciding which employees to terminate,” TIGTA wrote.
The layoffs largely targeted IRS workers who were hired as part of an $80 billion expansion under the Biden administration’s Inflation Reduction Act in 2022. More than half — $45 billion — was earmarked for tax enforcement.
All 7,315 employees were reinstated in May. However, 3,531 opted to join the Treasury Deferred Resignation Program, 752 resigned outright, and 3,023 returned to full-time work, TIGTA said.
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