February 6, 2025 - Some IRS Employees Can't Take Buyout Until May

While a recent federal court ruling has temporarily blocked the Trump administration's buyout offer, the IRS Human Capital Office has informed the agency's staff that employees in positions critical for the 2025 filing season could not accept the offer until May 15. A letter sent to IRS employees Wednesday specified that critical filing positions in Taxpayer Services, Information technology and the Taxpayer Advocate Service are exempt from the buyout offer until after tax season. The agency is attributing the decision to exempt the filing season employees to Treasury Secretary Scott Bessent.

The letter was sent one day before the deadline for accepting the Office of Personnel Management's (OPM's) “deferred resignation” program allowing federal employees to resign while receiving full pay and benefits through September. The offer excludes employees in the military, postal service, immigration enforcement, national security and other specified roles. The IRS's decision to exempt certain employees from the buyout aligns with the department's operational needs during the 2025 filing season.

A Massachusetts federal judge issued an order postponing the deadline for federal employees to accept the buyout offer until he can hold a hearing Monday afternoon. The order came after three federal unions asked for a temporary restraining order suspending today's deadline for federal employees to accept the offer.