Federal Manager's Daily Report

The coming turnover in the workforce as current employees retire is among the major management challenges for the IRS, an IG report has said, adding that many of those set to leave are themselves managers and executives.

More than one third of all executives and almost 20 percent of nonexecutive managers are currently eligible for retirement, and within two years, nearly 70 percent of all IRS executives and nearly half of the IRS’s nonexecutive managers are projected to be eligible, it said. Overall, about 40 percent of IRS employees will be eligible to retire within five years.

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“Further, the IRS’s challenge of having the right people in the right place at the right time is made more difficult by many complex internal and external factors” including budgetary constraints that already have caused the workforce to shrink by about a tenth in the last few years. “This reduction in employees possessing unique skills and institutional knowledge is particularly challenging as the number of tax returns the IRS processes continues to rise and the number of identity theft fraud cases the IRS works is also increasing.”

The IRS needs to develop an agencywide strategy for integrating new employees into the workforce and some best practices that would help new employees become more productive were not fully implemented, it added.

The comments came in a report reviewing recommendations of prior reports that are still pending, including in areas such as detecting identity theft, auditing, payment of erroneous claims, data center consolidation, and more.