IRS failed to follow its own protocols when firing probationary employees, new report finds

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When Elon Musk and Donald Trump's mission to slash the United States public service turned its attention to the Treasury Department, top officials at the Internal Revenue Service were quick to point out major flaws in the proposed plan for cutting staff.

Under a directive from the Office of Personnel Management, Treasury agencies were ordered to terminate employees who were still in their probationary period using a templated letter that cited "performance reasons and current mission needs."

The IRS leaders flagged that there weren't widespread documented performance issues with the thousands of probationary workers slated to be sacked. But the mass terminations went ahead in February and March regardless.

Now, a new report from government watchdog the Treasury Inspector General for Tax Administration has confirmed that of the 7,315 workers terminated, just 43 were documented underperformers. Almost 50% of the fired employees had been appraised as working at or above expectations, and the rest had no recorded performance issues.

Image: The Internal Revenue Service headquarters in Washington, D.C.

A court ordered that the probationary workers be asked to return to work in May; however, less than half were ultimately reinstated. The rest resigned, took a deferred resignation, or were placed on administrative leave.

The firings added stress to an agency already under pressure, as revealed by more than a year of reporting by ICIJ on the IRS's challenges in investigating and prosecuting tax crimes.

The TIGTA report, published in August, confirmed that the IRS did not follow its own protocols in firing so many workers, but also highlighted internal resistance to the orders. Traci DiMartini, the human capital officer for the IRS at the time, refused to sign the termination notices (which were sent unsigned) and later said in testimony for a lawsuit that the action was unprecedented.

"In all my decades of human resource management for the federal government, I had never before received a directive such as this one," she said in a sworn statement in March. DiMartini was placed on administrative leave shortly after the termination notices were sent. Read more.

FOREIGN INTERFERENCE WATCHDOG
Canada will appoint its first foreign interference commissioner and introduce a registry of foreign agents as part of a package of reforms aimed at fighting transnational repression, a government minister confirmed. Lawmakers had called for government action following ICIJ and CBC News' China Targets investigation that revealed how Beijing was intimidating and harassing dissidents living in Canada.

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ICIJ ON THE ROAD
Join ICIJ's head of data and research, Delphine Reuter, at the European Data and Computational Journalism Conference on Sept. 9 in Athens, Greece, for a panel discussion on using machine learning passport detection technology in offshore financial investigations. Plus, in November, ICIJ's deputy head of data and research, Karrie Kehoe, will share tips on navigating cross-border corporate data at the Global Investigative Journalism Conference in Kuala Lumpur, Malaysia.

Thanks for reading!
Hamish Boland-Rudder
ICIJ's head of digital and product

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