
IRS Drama: Reinstated Workers on Paid Leave as Legal Battle Continues
The IRS has reinstated thousands of previously fired probationary employees following recent court rulings, but has placed them on indefinite paid administrative leave rather than allowing them to return to work.
These employees, who were among approximately 6,500 terminated last month, have received reinstatement notices but are instructed not to report for duty. While this ensures they receive back pay, many remain uncertain about their long-term job security.

IRS 2025 tax brackets chart
The Biden administration has appealed the court's reinstatement order, claiming it's unconstitutional. Adding to the uncertainty, the IRS reportedly plans to reduce its workforce by 20%, with additional layoffs expected after tax season.

IRS headquarters building facade
Many reinstated employees are using their paid leave to search for new jobs, while others who were close to completing their probationary periods hope to achieve non-probationary status for better job security.

Woman speaking at IRS podium
National Treasury Employees Union president Doreen Greenwald has criticized the situation as chaotic and disrespectful, calling for swift action to return employees to work. Industry experts warn that continued staffing reductions could significantly impact taxpayer services, leading to longer wait times and processing delays.
With another round of workforce cuts anticipated in May, the employment status of these reinstated workers remains precarious, leaving many to question whether they will maintain long-term positions or face termination once again.
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