What's Happening?
The Internal Revenue Service (IRS) has consistently failed to meet its veteran hiring goals, as highlighted in a recent report by the Treasury Inspector General for Tax Administration (TIGTA). The report, released on June 30, 2026, reviewed the IRS's
hiring practices from fiscal years 2020 through 2024. During this period, the IRS hired 70,879 employees, of which only 8% were veterans, falling short of the longstanding 14% goal. The IRS has faced significant staffing reductions, losing about 28% of its workforce, including many veterans. Despite efforts to rehire employees to meet tax season demands, the IRS's overall veteran hiring percentage remains low, particularly in entry-level and seasonal positions. The IRS's FY 2024 Strategic Recruitment Plan acknowledges these shortcomings and outlines ongoing efforts to improve veteran hiring performance.
Why It's Important?
The IRS's inability to meet veteran hiring goals has broader implications for its operational effectiveness and public service mission. Veterans bring valuable skills and experiences that are crucial for fulfilling federal staffing needs. The shortfall in veteran hiring could impact the IRS's ability to efficiently serve taxpayers, especially during peak filing seasons. Additionally, the hiring freeze imposed by President Trump in January 2025, which remains in effect for the IRS, further complicates recruitment efforts. The IRS's struggle to meet its hiring goals reflects broader challenges in federal workforce management, including the need for strategic recruitment and retention of skilled employees.
What's Next?
The IRS has received an exception to the hiring freeze for essential filing season positions and has begun holding hiring events nationwide. The Treasury Department's establishment of the Treasury Common Services Center aims to centralize human resources processing, potentially improving recruitment efficiency. However, the impact of these efforts on the IRS's Human Capital Office remains uncertain. TIGTA recommends reassessing the IRS's veteran hiring goals, but the IRS maintains that the 14% target is aspirational. Continued tracking and reporting on veteran recruitment efforts are essential to ensure compliance with the Office of Personnel Management's Merit Hiring Plan.
