Professional Managers Association – Legislative Update
The legislative and policy environment affecting the IRS and the federal workforce continues to evolve. February brought several significant developments involving federal labor relations, congressional oversight of the IRS, and ongoing policy discussions surrounding workforce management and modernization.
Below is a summary of key developments from February and what IRS managers should watch for as we move into March.
One of the most notable developments in February was the IRS announcement that it had terminated its collective bargaining agreement with the National Treasury Employees Union (NTEU). The action follows broader executive actions issued in 2025 that expanded national security exemptions to collective bargaining across several federal agencies.
The termination of the agreement marks a significant shift in federal labor relations at the IRS and may affect how workplace policies and employee relations matters are addressed going forward.
For managers, this change may result in increased responsibility for implementing agency policies, communicating procedural changes to employees, and ensuring consistency in workplace practices. PMA is closely monitoring how these developments may affect IRS managers and leadership responsibilities across the agency.
Congress continued active oversight of the IRS during February, with lawmakers reviewing agency funding, modernization progress, and taxpayer service performance.
Several issues remain central to congressional discussions:
• IRS modernization efforts and technology upgrades
• Customer service improvements during filing seasons
• Workforce hiring and retention challenges
• Oversight of enforcement priorities and compliance programs
These discussions will influence how the IRS allocates resources and prioritizes operational initiatives in the months ahead.
Another area of focus in February involved the continued rollout of digital asset reporting requirements. Financial institutions and digital asset brokers are preparing for new reporting obligations that will require transaction information to be reported to both taxpayers and the IRS.
These requirements are intended to increase transparency and tax compliance in digital asset markets. As reporting expands in the coming years, the IRS may see increased volumes of transaction data related to cryptocurrency and other digital assets.
Managers involved in compliance, analytics, and enforcement operations may see growing operational demands as these reporting systems expand.
Several workforce policy discussions are expected to continue in March, particularly around federal workforce management authorities, workplace policies, and agency operations.
Members of Congress have expressed interest in reviewing how recent policy changes affecting federal labor relations may impact agency operations and employees. Additional hearings or policy discussions may occur as lawmakers assess these developments.
Congress will also continue discussions related to federal appropriations and IRS funding. Budget negotiations in the coming months will help determine the level of resources available for IRS operations, modernization efforts, and workforce staffing.
Funding decisions will play a key role in shaping the agency’s ability to continue upgrading legacy systems, improving taxpayer services, and supporting enforcement programs.
IRS modernization remains a major topic in congressional oversight discussions. Lawmakers continue to examine how modernization investments are improving operations, strengthening cybersecurity protections, and enhancing the agency’s ability to process taxpayer information efficiently.
Managers will continue to play a central role in implementing these technological changes and ensuring employees are supported during operational transitions.
PMA continues to monitor legislative and policy developments affecting IRS managers and the federal workforce. As discussions move forward, PMA remains focused on advocating for policies that support effective leadership across the agency.
Current PMA advocacy priorities include:
Manager Pay Reform
Supporting a modern pay structure that allows managers to advance professionally without needing to change positions or business units.
Leadership Development
Promoting expanded training, mentoring, and professional development opportunities for IRS managers.
Operational Support
Ensuring managers have access to modern technology, adequate staffing resources, and tools needed to lead their teams effectively.
Workforce Stability
Supporting policies that strengthen recruitment, retention, and employee engagement across the IRS workforce.
As legislative developments continue to unfold in Washington, PMA will keep members informed about policy changes that may affect IRS managers and the broader federal workforce.
IRS managers play a vital role in ensuring the agency continues to meet its mission of serving the American public. PMA remains committed to ensuring the voice of IRS leadership is represented in the policy discussions shaping the future of the agency.
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