IRS Staffing Crisis: HR & IT Employees Filling Tax Season Roles

IRS Staffing Crisis Forces Reassignment of IT and HR Personnel to Tax Filing Duties

The Internal Revenue Service is facing a significant challenge as the 2026 tax filing season approaches: a severe staffing shortage. To cope, the agency is reassigning employees from non-frontline roles – including human resources and potentially its IT department – to handle customer service and tax return examination duties. This move, first reported by GovExec, underscores the growing strain on the IRS as it navigates workforce reductions and new legislative demands.

According to IRS employees familiar with the situation, the agency is seeking up to 1,400 volunteers from its non-bargaining unit staff to fill these critical roles. If sufficient volunteers aren’t found, some employees may be “volun-told” – essentially mandated – to accept the reassignment. Those being reassigned have been instructed to inform colleagues that their temporary detail will extend through the summer, framed as “direct support of the IRS mission.”

Workforce Cuts and Hiring Shortfalls

The need for such drastic measures stems from a substantial loss of personnel over the past year. The IRS workforce has shrunk by 27% largely due to voluntary separation incentives, according to the National Taxpayer Advocate. Compounding the problem, the agency has fallen short of its hiring goals for the current filing season. This combination of attrition and recruitment difficulties has created a critical gap in frontline staffing.

Downgrades and Fear of Further Layoffs

The IRS is also asking employees to voluntarily accept “downgrades” to revenue-generating positions, such as revenue agents, revenue officers, compliance officers, tax examiners, and customer service representatives. One IRS HR employee stated that the primary motivator for those accepting these downgrades is “the fear of another reduction in force.” This suggests a climate of uncertainty and anxiety within the agency.

The threat of layoffs isn’t unfounded. While IRS officials indicated last summer that layoffs were “off the table,” the Treasury Department issued Reduction in Force (RIF) notices to nearly 1,400 IRS employees during the 43-day government shutdown in 2025. Although those notices were rescinded, and a recent spending deal temporarily bars new layoff notices through February 13, 2026, the possibility of future workforce reductions remains a concern.

Limited Training and Operational Disruptions

The reassigned HR and IT staff are reportedly receiving “little to no training” before being deployed to frontline filing season work. This raises concerns about their ability to accurately and efficiently handle taxpayer inquiries and process tax returns. The lack of adequate preparation could potentially lead to errors, delays, and increased frustration for taxpayers.

Beyond the immediate staffing challenges, the IRS is grappling with internal organizational issues. A recent restructuring involving the Online Services division has created confusion and uncertainty for IT employees. The division was initially transferred to the Treasury Department, only to be moved back to the IRS, where it was subsequently “dismantled.” Employees within the former Online Services team are now awaiting new work assignments, with over 110 individuals currently lacking clear roles or responsibilities.

IT Reorganization and Resource Waste

The back-and-forth transfer of the Online Services division is being described by one IRS IT employee as a “waste of time, resources and taxpayer dollars.” The employee highlighted the difficulties in maintaining access to essential IRS tools and systems during the period when the team was classified as Treasury staff, requiring frequent requests for temporary access exemptions.

More broadly, the IRS moved over 1,000 employees out of its IT shop in December 2025, reassigning them to the agency’s chief operating officer. This arrangement was initially described as temporary, and displaced IT employees were asked to submit their resumes in hopes of securing other vacant positions within the agency.

Delays in Retirement Payments and Ongoing Issues

The internal turmoil extends beyond current staffing. Retiring IRS employees are experiencing significant delays in receiving their payouts for unused annual leave and their initial annuity payments. This issue was raised by top Democrats on the House Ways and Means Committee in a February 3, 2026 letter to Acting IRS Commissioner Scott Bessent. Tax Notes reported last month that the IRS faced a backlog of 7,300 retirement applications at the end of 2025.

One IRS employee attributed these issues to the “Fork in the Road” and Debt Restructuring Programs (DRP), suggesting that previous restructuring efforts have contributed to the current challenges.

Leadership Changes and Filing Season Concerns

The IRS recently announced a shakeup of its top ranks, led by CEO Frank Bisignano, who also heads the Social Security Administration. This occurred just before the start of the 2026 filing season. One employee noted that while Bisignano has emphasized the need for a smooth filing season, “some cracks are emerging,” indicating that the agency’s preparations may be falling short.