The Internal Revenue Service has placed 50 senior IT leaders on administrative leave. This is on top of the 7,320 other workers that have already been cut.
The IRS sent an email last Friday to the newly cut employees saying they weren’t required to report to the office and that they would lose access to their offices and computers. Of course, they’ll continue to receive their full salary and benefits.
“This paid administrative leave status will remain in effect until further notice,” the email said. “You will continue to receive your full salary and benefits during the entirety of this administrative leave period. You are directed not to perform any work-related tasks during this administrative leave period.”
The New Administration has responded to a court’s order requiring it to reinstate approximately 24,000 workers across 18 federal agencies by placing them on paid administrative leave. The IRS has cut about 13% of its workforce so far, with another 5,000 employees accepting voluntary buyouts.
Estimates of further planned cuts vary from 20% up to 50% of the IRS workforce. The IRS is also facing another budget cut of $20.2B under the recent budget deal passed by Congress to avert a government shutdown.
Federal workers are also facing the threat of a loss of their collective bargaining rights after President Trump signed an executive order removing the requirements from employees at agencies, including the Treasury Department, that he deemed to have national security missions.
On Monday, the National Treasury Employees Union filed a lawsuit to stop the order.
The saga continues.
Let me leave you with this…
The Jobs Report provided by the Labor Department yesterday provided the following results from February, 2025.
1 – The number of job openings was steady in February at 7.6 million.
2 – The number of people who got new jobs was at a rate of 3.4% that was unchanged from January.
3 – There was also no change in layoffs or workers quitting their jobs.
This was all good news and the markets responded accordingly.
We’re waiting for the announcement later today from the New Administration on their Tariff Strategy. Whatever happens will certainly have a profound effect on small business operations.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.SalarySolutions.net
www.AccountingSolutionsLtd.com
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