From the Executive Director — Important Capitol Hill Developments That Affect PMA Members

From: Kelly Reyes, Executive Director, Professional Managers Association (PMA)
Date: September 25, 2025

Members,

I want to share a concise update about recent activity on Capitol Hill and at the federal level that directly affects IRS managers. Over the coming weeks you may see changes that impact staffing, workload, and oversight. My goal with this note is to explain what’s happening, what it means for you, and the practical steps you and your teams should take now to reduce risk and preserve operations.

What’s happening (quick overview)

• Budget and appropriations pressure: Congress is actively negotiating appropriations and agency budgets. That process has prompted agency planning for large personnel adjustments.
• Workforce reductions and voluntary separation offers: The IRS is implementing significant workforce changes (including deferred-resignation and other separation initiatives) that are creating immediate vacancies and increased workload for remaining staff.
• Retention and incentive changes: Some recruitment/retention flexibilities and bonuses are being scaled back or eliminated, reducing tools managers normally use to keep critical personnel.
• Heightened congressional oversight and legislation: Committees are active on IRS oversight; additional reporting requirements, hearings, or inquiries are possible.
• Leadership transitions: Nomination and confirmation activity at senior levels can quickly shift agency priorities and enforcement direction.

What this means for PMA members

• Staffing gaps will likely create short-term workload surges, reassignments, and pressure on service delivery (especially during filing season planning).
• Managers face increased legal/HR complexity if reductions-in-force (RIFs) or other personnel actions become necessary — strict documentation and HR coordination will be essential.
• Lower morale and retention risk as incentives change and separations occur — this can degrade institutional knowledge and unit performance.
• Expect more requests from oversight bodies or the Office of the Inspector General; managers may need to produce policy memos, process maps, and decision records on short notice.
• Agency priorities and metrics could shift quickly under new leadership, affecting enforcement focus and resource allocation.

Immediate actions I recommend to every manager

1. Document thoroughly now. Keep contemporaneous records of staffing decisions, performance issues, workload redistributions, and the rationale for any personnel action. Good documentation reduces legal and oversight exposure.
2. Work with HR and LR before any personnel actions. RIFs and separations are highly technical and risk-sensitive — don’t act alone.
3. Update contingency plans. Identify critical functions and spell out continuity steps (who covers what, when, and for how long). Prioritize processes that must remain operational during staffing shortfalls.
4. Communicate clearly and often with your team. Provide transparent status updates, known timelines, and resources for staff support to reduce rumors and avoid morale collapse.
5. Prepare for oversight. Assemble decision memos, process maps, audit trails, and contacts now so you can respond quickly to congressional or IG requests.

How PMA can help

PMA stands ready to monitor committee activity and legislation and notify members of developments that require immediate action or comment.

With appreciation for your leadership during challenging times,

Kelly Reyes
Executive Director, Professional Managers Association

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TIGTA Report: IRS Terminated Probationary Employees Without Following Internal Procedures and Considering Individual Performance

IRS Terminated Probationary Employees Without Following Internal Procedures and Considering Individual Performance

Why did we do this review?

As part of the President’s actions to reduce the size of the federal government’s workforce, the Office of Personnel Management issued guidance for agencies to terminate probationary employees. As a result of these efforts, in February 2025, the Department of Treasury directed the IRS to begin sending termination notices to probationary employees. The letters notified employees that they were terminated for performance reasons and current mission needs.

What did we find?

There have been ensuing court challenges since notices were sent to probationary employees in February 2025 terminating their employment. Subsequently, IRS and Treasury Department leadership decided that all 7,315 probationary employees sent termination notices must return to full work status by May 2025. These employees were notified of their mandatory return date along with onboarding instructions. These employees had previously been placed on administrative leave after court rulings in March 2025. Our evaluation focused on the actions and processes that the IRS followed when it sent termination notices in February and March 2025 to probationary employees.

The IRS identified more than 16,000 employees who were still in their probationary period. After exempting employees who were either deemed essential personnel for tax filing season, had appeal rights, were involved in law enforcement, or were military spouses, the IRS issued termination letters to 7,315 probationary employees. The time between identifying employees and issuing termination notices was 29 days. All probationary employees received the same letter that cited performance as a reason for termination. We confirmed that nearly all the terminated probationary employees either did not have a performance rating on record or were rated as Fully Successful or better. We determined that 51 percent had no performance rating of record. For the remaining 49 percent, we determined that 3,251 (90 percent) had a “Fully Successful” rating, and 305 (8 percent) had an “Outstanding” or “Exceeded Fully Successful” rating. As a result, we conclude that the IRS did not consider individual employee performance when terminating probationary employees.

As these activities were taking place, several senior IRS officials raised concerns to us that probationary employees did not have documented performance issues. We also received letters from several members of Congress requesting that we review the dismissal of probationary employees to determine if the dismissals complied with agency policies and whether individual performance was considered. This report assesses the actions the IRS has taken to terminate its probationary employees.

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IRS Transitioning to Electronic Refunds

The IRS announced it will phase out paper tax refund checks for individual taxpayers starting September 30, 2025, in compliance with Executive Order 14247 signed by President Donald Trump. This move is part of a broader shift toward electronic payments, aiming to:

• Reduce fraud and delays (paper checks are 16x more likely to be lost or stolen)
• Speed up refund delivery (electronic refunds typically arrive in under 21 days)
• Cut costs (electronic payments cost less than 15 cents vs. 50 cents for paper checks)

The IRS will issue detailed guidance for 2025 tax returns before the 2026 filing season begins.

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Today, the Public Service Alliance (PSA) publicly launched the first-ever marketplace to better protect America’s over 23 million current and former public servants and their families.

At a time when public service in America is more dangerous than it has been in recent memory, the PSA marketplace provides unparalleled access to a growing range of free resources and discounted third-party services that help protect privacy and security, mitigate legal risk, and support personal and professional well-being.

Explore the New Marketplace

After months of helping hundreds of at-risk individuals through organic referrals, PSA is now launching its new platform to continue meeting the urgent need.

PSA is for anyone who serves or has served at any level of government, across political lines – including veterans and current and former federal, state, local, tribal, and territorial civil servants, political appointees, law enforcement, judges, lawmakers, emergency responders, and active-duty military.

Through our marketplace, these individuals can save time and money on four categories of critical resources:

Privacy & Security: Free or discounted services to remove your online data, track physical and digital threats, evaluate your risks, and access expert guidance to protect your family's security.*

Legal & Reputational: Low-cost access to legal consultations via partner law firms and to crisis communications experts.* (PSA itself does not provide legal advice.)

Career: Free or discounted access to career coaches, job recruiters, and other employment and financial well-being tools and resources.*

Well-Being: Free or discounted access to personal coaches, services, and other tools to support your well-being and help you be at your best.*

* Includes external, third-party service providers

Explore the New Marketplace

Three Ways You Can Get Involved:

• Fund our critical work to help us serve the estimated 23 million current and former public servants nationwide. Please reach out to learn more at Isa@ThePublicServiceAlliance.com.
• Refer current and former public servants to PSA by forwarding this email so they know they are eligible for our support.
• Raise awareness about PSA by sharing this LinkedIn post or today’s press release.

Thank you and take good care,

Isa Ulloa
PSA Founder & CEO

Organizations Step Up to Help Federal Employees Leaving Service

New tools are launching to help former Feds find new jobs, as well as help with financial, emotional, and other issues. The platforms use a mix of AI, coaching, and other services. 

Read More

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RELAUNCH OF ONLINE TUTORING

As a federal employee, your service supports the nation. And once again, FEEA is here to support your K-12 student through the relaunch of our free, online tutoring program for the 2025-2026 school year!

About our Tutoring Program:

• Wide Variety of Subjects and Levels: Catering to learners from beginner to Advanced Placement® levels.
• Subject Matter Experts: Our partnership with Tutor.com provides access to over 3,500 tutors, including certified teachers, college professors, and graduate students.
• Dedicated Test Preparation: Help your child excel in standardized tests including the ACT, PSAT, and SAT.
• Parent Coaching: Equip yourself with strategies to nurture motivation and manage knowledge gaps, setting clear expectations and goals for your child.
• Resource Library: Access to lessons, worksheets, and study guides to augment your child's learning journey.
• College Admission Support: A self-paced portal gives students admissions support with checklists, application trackers, calendar planning, expert feedback on essays, and test prep materials.

Who is eligible?

• Current regular hire federal civilian and postal employees earning a full-time equivalent salary under $95,000 annually.

Get Started!

Visit FEEA.org/Tutoring for eligibility criteria and to begin the application process.

**Don’t have a child who needs tutoring? Please be sure to share this message with fellow feds who might benefit from this service!

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