IRS Employees Can't Take Trump Buyout Offer, For Now

IRS employees work at various tingle tables used in the extraction process for sorting taxpayers returns into various cubby holes at the Internal Revenue Service in Austin, Tx. (Credit: Matthew Busch for The Washington Post via Getty Images)

(Image credit: Getty Images)

When the Trump administration pressured IRS employees to take buyouts before Feb. 6 they missed one crucial detail: it’s tax season.

What followed was an abrupt letter directed to the IRS workforce on the eve of the buyout deadline.

Those in “critical filing season positions” in Taxpayer Services, Information Technology, and the Taxpayer Advocate Service were told they are exempt from the buyout plan until May 15, 2025. Anyone who already resigned must work through the extended period.

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The IRS headcount as of Nov. 2024 amounted to 100,791 full-time employees, with over half of the workforce belonging to IT and taxpayer services, the National Taxpayer Advocate (NTA) reported.

The news comes after President Donald Trump imposed a government-wide hiring freeze, and offered about 2.3 million full-time federal employees a so-called buyout through a “deferred resignation program” to hollow out the government workforce. Workers who voluntarily step down by the deadline would still collect paychecks and benefits until Sept. 30.

Note: That program is on hold due to a judge's ruling halting the program temporarily right before the Feb. 6 deadline. For more information, see Trump Buyout Program Paused: What It Means for You.

The IRS expects more than 140 million tax returns to be filed by the April 15 deadline, there’s no telling how gravely gutting its workforce would have impacted taxpayers. Jan. 27 marked the official start of the 2025 tax season.

Here’s what we know so far about Trump’s plan to reduce the federal workforce.

Trump buyout offer accepted by thousands of federal employees

Trump’s nationwide purge of the government workforce failed to yield his expected results and nearly backfired if enough IRS workers resigned amid tax season.

At least 40,000 government employees accepted an offer to quit their jobs in exchange for Trump’s so-called buyout before the Feb. 6 deadline, the White House said on Feb. 5.

That figure represents about 2% of more than 2 million federal employees who were given a deferred resignation offer on Jan. 28. No clarity has been given regarding how many were tied to the tax agency.

Statistically, about 60,000 individuals retire each year across federal jobs — begging the question, were they leaving anyway?
Key fact: 63% of IRS employees will soon reach retirement age.

Elon Musk’s hand in buyouts: The U.S. Office of Personnel Management (OPM) shocked federal employees with an exit offer titled “Fork in the Road” via an email blast. A subject line familiar to laid-off Twitter employees following Elon Musk’s acquisition of the company, now known as X.

Musk, who has been deemed a “special government employee” tasked by Trump with cutting spending and reshaping the government workforce via the Department of Government Efficiency (DOGE) hoped at least 5% to 10% of the federal workforce would quit.

“Can take the vacation you always wanted, or just watch movies and chill, while receiving your full government pay and benefits,” the DOGE posted on X, trying to entice fed workers to call it quits.

No reassurance for federal employees who stay

Employees who refuse to voluntarily separate from their posts were told via the same email that they must return to in-person work, adhere to high-performance standards, and that the workforce would be comprised of “reliable, loyal, trustworthy” individuals.

Lastly, the memo warned that except for branches of the military, the majority of federal agencies would likely be “downsized through restructurings, realignments, and reductions in force.”

Measures would include furloughs and reclassifications for a “substantial” amount of at-will employees.

Top officials warn: “Don’t be fooled… he’ll stiff you”

As millions of federal employees consider their next steps, federal union leaders and top government officials are warning workers to not take Trump’s buyout.

The American Federation of Government Employees (AFGE), the largest federal employee union representing 800,000 federal and D.C. government workers across 900 local unions cautioned members to not be tricked into resigning, citing concerns of not getting paid.

“There is not yet any evidence the administration can or will uphold its end of the bargain, that Congress will go along with this unilateral massive restructuring, or that appropriated funds can be used this way, among other issues that have been raised,” AFGE said in an email to its members.

“We are encouraging AFGE members NOT to resign or respond to this email until you have received further information and clarification,” top union officials added.

Government officials also criticized the validity of the buyout program.

“There’s no budget line item to pay people who are not showing up for work,” Sen. Tim Kaine (D-VA) said on the Senate floor. “Don’t be fooled. He’s tricked hundreds of people with that offer. If you accept that offer and resign, he’ll stiff you just like he stiffed the contractors.”

A USA Today analysis found Trump had been involved in more than 3,500 lawsuits over the past three decades, involving normal Americans who claim they were never paid by Trump or his companies.
Some stiffed individuals included Trump’s lawyers.

Noteworthy: Any fed worker that accepts the Trump administration’s buyout deal would waive the right to legal action, according to a circulated OPM memo.

That’s a risk many workers aren’t willing to take.

“You can’t buy me off, scare me away, or intimidate me into resigning,” one federal worker said anonymously. “I’m angry, spiteful, and resolute in holding the line and outlasting anyone trying to destroy the agency whose work I believe in and a mission I take to heart.”
federal union member, American Federation of Government Employees

Bottom line: Troubling road for IRS

The IRS has a tough road ahead under the Trump administration, from losing billions in funding to a shrinking workforce.

Elon Musk’s apparent hyperfixation with “deleting” the tax agency has already sparked confusion and panic among taxpayers.

This week, the tech billionaire suggested on his social media platform X he had fired 18F, a digital services agency responsible for developing the IRS Direct File system. The IRS clarified that the free tax filing program is still functional across 25 states for the 2025 tax season.

Musk also gained unprecedented access to the U.S. Treasury payment system, which includes sensitive information like your name, Social Security Number, address, and government payments like your tax refund or Social Security payments.

At the same time, Republican lawmakers are pushing a bill to abolish the IRS. All of these changes can impact taxpayers like you, so stay tuned.

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Gabriella Cruz-Martínez is a finance journalist with 8 years of experience covering consumer debt, economic policy, and tax.

Gabriella’s work has also appeared in Yahoo Finance, Money Magazine, The Hyde Park Herald, and the Journal Gazette & Times-Courier.

As a reporter and journalist, she enjoys writing stories that empower people from diverse backgrounds about their finances, no matter their stage in life.