IRS Faces Mass Exodus? White House Offers 8-Month Paid Buyout to Federal Workers

Опубликовано: 30 Январь 2025
на канале: The Accounting Podcast
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A major shake-up is happening in federal agencies, with the White House offering an unprecedented buyout deal to federal employees. In this clip, we break down what this means, especially for the IRS and tax season.

The deal is straightforward but significant: federal workers who resign by February 6th will receive full pay and benefits through September 30th - that's 7 to 8 months of paid leave. Those who stay will need to return to the office full-time, 5 days a week.

The IRS situation is particularly concerning. They're already dealing with an 8.5% natural turnover rate and a hiring freeze. With this buyout offer, they could lose up to 20% of their workforce. This might remind you of the COVID era's long wait times and processing delays - but potentially worse.

What does this mean for tax professionals and taxpayers? You might see slower processing times, longer wait periods for responses, and possibly fewer audits. The timing is critical too - this is happening right as we head into tax season.

Whether you're a tax professional working with the IRS or a business owner dealing with tax matters, these changes could affect how you handle tax-related issues in the coming months. Stay informed and plan accordingly.