The TIGTA report arrives as the IRS is reportedly trying to bring back workers that took OPM's deferred resignation offer or buyouts in the face of staff shortages. Image: Daniel J. Macy/Shutterstock.com
By: FEDweek StaffThe IRS violated its own internal rules when it fired probationary employees, citing performance but never reviewing individual records, the Treasury Inspector General for Tax Administration reported Aug. 14.
It found that the IRS dismissed certain probationary employees for “performance” without reviewing individual records—a procedural lapse confirmed by TIGTA spokesperson Karen Kraushaar.
Although the watchdog did not cite any financial losses or recommend corrective action, the report identified policy gaps that could weaken fairness and accountability in personnel actions—particularly for employees with limited appeal rights under the Merit Systems Protection Board.
Apart from appeal rights, TIGTA found that the core policy gap lies in the front‑end decision‑making that prompted the terminations:
- More than half of the 7,315 probationary employees terminated had no performance rating on file.
- Of those with ratings, most were marked Fully Successful or better—including some rated Outstanding.
- The report’s findings come against the backdrop of Trump‑era “workforce reshaping” initiatives. Through the Department of Government Efficiency (DOGE), the Office of Management and Budget, and the Office of
- Personnel Management, agencies including the IRS and Department of Energy adopted faster separation policies to streamline operations.
Supporters said that the measures would improve accountability, while critics have argued that they risked eroding employee protections and institutional expertise. Several of those policies remain under court challenge by unions and individuals alleging due‑process violations.
Appeals are still underway. The Supreme Court could step in if federal circuit courts issue conflicting rulings on the scope of relief and on how much discretion agencies have during probationary periods. The outcome could redefine the balance between managerial flexibility and procedural protections for federal employees.
The TIGTA report arrives as the IRS is reportedly trying to bring back workers that took OPM’s deferred resignation offer or buyouts in the face of staff shortages, as another IG report warned in June. More recently the IG stated that the main customer service level indicators that the IRS widely reports “do not fully reflect the taxpayer experience,” which is more negative than those figures indicate.
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