IRS Staffing Shortfalls Could Increase Risk for Managers
Hiring Gaps at IRS
The Internal Revenue Service entered the 2026 filing season without meeting key hiring goals for employees responsible for processing tax returns and assisting taxpayers. According to the Treasury Inspector General for Tax Administration (TIGTA), the IRS filled only about 42% of its authorized hiring goal for tax return processing positions and fell approximately 34% short of its hiring target for taxpayer assistance employees.
To maintain operations, the IRS relied on overtime and temporarily reassigned hundreds of employees from other functions to support filing season workloads. TIGTA also reported that staffing shortages led the agency to lower certain taxpayer service performance expectations, while backlogs increased in several return processing programs.
For all federal managers, staffing shortages often translate into increased workloads, compressed timelines, and heightened scrutiny. In an environment where every decision may later be reviewed, a professional liability insurance (PLI) policy from FEDS Protection can help protect the career you’ve worked hard for.
Increased Workload Means Increased Exposure
Periods of understaffing can create challenges well beyond customer service. Managers may be asked to assume additional responsibilities, work overtime, or support unfamiliar assignments while continuing to meet demanding performance expectations.
At the same time, tax administration remains subject to intense oversight from Congress, inspectors general, the courts, taxpayers, and the media. Decisions involving examinations, collections, enforcement actions, and taxpayer interactions may be questioned long after the work is completed.
Even experienced managers can face allegations and ethics complaints when workloads increase and resources become strained. Administrative investigations, disciplinary actions, and personal-capacity lawsuits can arise even when managers believe they acted appropriately and in good faith.
Protecting Yourself While Protecting the Mission
Federal managers cannot always control staffing levels, hiring delays, or shifting priorities. They can, however, prepare for the possibility that a difficult assignment or increased workload could lead to allegations of wrongdoing.
If an allegation is made against you, having experienced legal representation can make a significant difference. A professional liability insurance (PLI) policy from FEDS Protection helps ensure you have knowledgeable counsel available if you face an administrative investigation, disciplinary action, or civil lawsuit arising from your official duties.
FEDS PLI for Managers
As the professional liability insurance (PLI) provider endorsed by the leading federal managers associations, FEDS Protection offers federal employee PLI policies with $1,000,000, $2,000,000, or $3,000,000 in civil liability protection per incident for attorney fees and indemnity costs if you are sued in your individual capacity.
The FEDS policy also includes:
Up to $200,000 in per incident legal representation coverage for administrative and disciplinary matters,
Up to $100,000 in per incident criminal defense coverage,
Access to experienced attorneys who understand federal employment matters.
Annual premiums start at $290. Additionally, many federal managers, supervisors, and law enforcement officers may be eligible for agency reimbursement of up to 50% of their PLI premium.
To learn more about how a FEDS Protection PLI policy can help protect your career, visit www.fedsprotection.com or call (866) 955-FEDS, Monday through Friday, 8:30 a.m. – 6:00 p.m. ET.
This article is provided for informational purposes only and does not constitute legal advice.
*Discounts are available for insured members paying annually for their FEDS PLI policy. Payroll Deduction orders are not eligible for discounts.
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