The IRS is reinstating thousands of previously fired probationary employees but placing them on paid administrative leave instead of active duty. This decision comes after court rulings ordered the Treasury Department to rehire these workers, though their long-term employment status remains uncertain.

Key developments:

• Approximately 6,500 probationary employees were terminated last month
• Reinstated employees are told not to report to work until further notice
• The Biden administration is appealing the court's reinstatement order
• Reports indicate the IRS plans to cut 20% of its workforce

Impact on employees:

• Receiving back pay while on administrative leave
• Many are searching for new jobs due to uncertainty
• Those near completing probation hope for non-probationary status protection
• Concerns about potential termination in upcoming workforce reductions

Expected consequences:

• Potential significant impact on IRS customer service
• Longer wait times for taxpayers
• Increased processing delays during tax season
• Additional workforce cuts expected in May 2025

The National Treasury Employees Union has criticized the situation as chaotic and disrespectful, calling for quick action to return employees to active work status. Meanwhile, both reinstated employees and taxpayers face uncertainty about the IRS's future operational capacity.

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