The IRS ‘Reinstated’ 7,000 Workers, But They Are Not Returning To Work ?

On March 14, 2025 we posted Courts Order 6,700 IRS Employees to Be Rehired But They Can Still Be Properly Fired by May 15, where we discussed that two judges ordered federal agencies on February 14, 2025 to reinstate tens of thousands of workers with probationary status who had been fired across 19 agencies as part of President Trump’s government-gutting initiative. 

“The Court has read news reports that, in at least one agency, probationary employees are being rehired but then placed on administrative leave en masse,” the order said. “This is not allowed by the preliminary injunction, for it would not restore the services the preliminary injunction intends to restore.” Both judges ordered that the agencies offer to reinstate any probationary employees who had improperly been terminated. Neither order was a final decision in the case.  

Now according to The Tax Adviser,  the federal government will pay about 7,000 IRS probationary employees, who were laid off less than a month ago, not to work while lawsuits over layoffs wind their way through the court system, the agency said in an email.

Acting IRS Commissioner Melanie Krause said in the email sent to all IRS employees that the probationary workers, who were laid off Feb. 20, would be reinstated and placed on administrative leave until further notice.

The Email Sent To Probationary Workers Advised
Them “Not [To] Report To Duty Or Perform Any Work
Until Receiving Further Guidance.”

The email cited an order from a U.S. District Court judge in Maryland that 18 federal agencies, including Treasury, reinstate “certain probationary workers” at least temporarily.

Probationary employees who sought details about the administrative leave received a second email that said the workers will receive back pay and that all benefits, such as life insurance and health, vision, and dental coverage, will be reinstated. Meanwhile, other job losses loom at the IRS, Krause’s email said.

The Trump administration wants to cut the IRS workforce by 20% by May 15, including those who have already left or were fired.

Officials at the Elon Musk-led group advising the administration want Acting IRS Commissioner Melanie Krause to eliminate 18,141 jobs across the agency. This includes the roughly 12,000 employees terminated as part of new-hire layoffs.

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