IRS Terminations of Probationary Employees Largely Undocumented, Watchdog Finds
A recent report from the Treasury Inspector General for Tax Management (TIGTA) reveals that the vast majority of probationary employees terminated by the IRS following a directive to reduce headcount did not have documented performance issues. The findings raise questions about the rationale behind the widespread dismissals.
In august, TIGTA released a report detailing the agency’s response to a directive from the Office of Personnel Management (OPM) to reduce staffing levels. The IRS identified nearly 16,900 probationary employees – those in a final employment trial period – for potential termination. However, the TIGTA report found that only 43 of those dismissed had documented performance concerns.
More than 3,500 employees who were terminated had received performance ratings of “fully triumphant” or better. the remaining dismissed employees had no performance rating or record on file.
Prior to the issuance of termination notices, senior IRS officials reportedly expressed reservations about the dismissals, noting the lack of documented performance issues for many of the targeted employees. Despite these concerns, the IRS’s Human Capital Office proceeded with sending the notices.
The report also highlighted instances of misclassification, with over 100 employees ”erroneously sent” termination notices despite their work being deemed “mission critical.” These mistakenly terminated employees included tax law specialists and revenue agents.
Following a legal challenge, the terminated employees were slated for reinstatement in May. However, less than half were ultimately brought back into their positions.The remainder either resigned, accepted deferred resignations with pay through September, or were placed on administrative leave.
traci DiMartini, the IRS’s human capital officer, testified in a related lawsuit that the directive to terminate probationary employees on a large scale was unprecedented in her decades of federal human resources experience. In a sworn statement, she stated that such large-scale terminations, requiring individualized performance assessments, were “never…done, to my knowledge.” DiMartini herself refused to sign the termination notices and was subsequently placed on administrative leave.
The terminations occurred amidst broader reductions in force across the federal government, with legal challenges initially halting further terminations before the U.S. Supreme Court allowed the plans to proceed in July. As of the TIGTA report’s publication, the long-term status of the reinstated employees remained uncertain.
This report builds on previous reporting indicating meaningful staff reductions within the IRS, including a 38% decrease in the unit responsible for auditing billionaires since January. Both the TIGTA and the IRS declined to provide further comment beyond the contents of the report.
