Robert Kerr, a former IRS employee and current tax consultant, joins Tax Notes reporter Benjamin Valdez to discuss the implications of President Trump's federal hiring freeze on the IRS. They explore how this freeze impacts staffing and operational capabilities, leading to uncertainties for employees. Kerr highlights challenges in maintaining taxpayer interactions and morale, amid new employee buyout initiatives. The conversation delves into the complexities of government downsizing and its potential effects on the IRS's long-term strategic priorities.
The federal hiring freeze significantly hinders the IRS's ability to recruit new personnel, exacerbating existing staffing issues during critical tax seasons.
The skepticism surrounding the buyout offer for federal employees introduces legal and ethical dilemmas, impacting the operational stability of the IRS amid workforce uncertainty.
Deep dives
Impact of Executive Orders on IRS Workforce
The executive order instituting a hiring freeze for all federal agencies, including the IRS, has significant implications for the agency's workforce. With this freeze, the IRS is unable to hire new employees until it is deemed necessary by the administration. This situation exacerbates existing attrition issues, as many IRS personnel are already nearing retirement eligibility. The lack of targeted hiring undermines the agency’s capacity to manage its workload and maintain efficient operations amid ongoing demands, particularly during the busy tax season.
Concerns Over Buyout Offers for Federal Employees
The administration's buyout offer to federal employees, which was received with skepticism, raises various legal and ethical concerns. Many employees, particularly those nearing retirement, may contemplate whether to accept this offer, creating uncertainty around the IRS's operational stability. The Union representing federal employees has voiced concerns about the legality of the offer and its potential coercive nature, noting that the timeline given to respond was unreasonably short. Amid uncertainty regarding continuing appropriations, potential recipients face daunting decisions regarding their job security and future.
Challenges in Attracting and Retaining IRS Staff
Recruiting and retaining employees at the IRS is becoming increasingly difficult due to the current climate of uncertainty and administrative changes. The tedious application process and the possibility that job offers may not be upheld discourage potential applicants from pursuing federal employment. Furthermore, competitive private sector salaries and benefits complicate the hiring landscape further, as potential candidates weigh their options. In light of the agency’s challenges, it becomes crucial to address how these factors impact its ability to maintain a competent and motivated workforce.
Robert Kerr, formerly with the IRS and now with Kerr Consulting, discusses the recent federal hiring freeze and buyout offer and speculates how they may affect the IRS.
** This episode is sponsored by the University of California Irvine School of Law Graduate Tax Program. For more information, visit law.uci.edu/gradtax.
*** Credits Host: David D. Stewart Executive Producers: Jasper B. Smith, Paige Jones Showrunner: Jordan Parrish Audio Engineers: Jordan Parrish, Peyton Rhodes
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