08/24/2026
Dear PMA Members,
As we move through August, the pace of change across the IRS and the federal workforce shows no signs of slowing. Developments on Capitol Hill, evolving workforce policies, and continued operational pressures are all shaping the environment in which IRS managers and management officials are being asked to lead.
Congress continues to focus on tax administration, taxpayer service, IRS accountability, funding, and operational transparency. At the same time, the IRS is managing the effects of staffing losses, modernization demands, service-delivery pressures, and significant workforce changes. Recent attention to backlogs, call wait times, taxpayer-service performance, and the agency's capacity to carry out its mission reinforces something PMA has continued to emphasize: decisions made in Washington have a very real impact on the managers and employees responsible for delivering the IRS mission every day.
For PMA members, staying informed is more important than ever. As we look toward FY 2027, managers are preparing for the transition to ITM Performance Management, monitoring workforce and telework developments, and continuing to balance demanding operational responsibilities with the need to support their employees and provide taxpayers with the service they deserve.
In this month's newsletter, we have pulled together the congressional, workforce, and operational developments that we believe matter most to you. Our goal is not simply to tell you what is happening, but to help connect the dots—what changed, why it matters, and what it may mean for you and the employees you lead.
You will also see some exciting updates from within PMA. We are welcoming new members to our National Board, expanding our recruitment efforts, and preparing to visit several IRS locations over the coming months. As the IRS continues to change, strengthening PMA's membership and ensuring that managers, management officials, and non-bargaining unit employees have a strong voice remains one of our highest priorities.
Thank you for your continued leadership, professionalism, and commitment to public service. I know that leading through this much change is not always easy, and I appreciate everything you continue to do for your employees, the IRS, and the taxpayers we serve.
As always, PMA will continue working to keep you informed, represent your interests, and make sure your voice is heard.
Kelly Reyes
Executive Director
Capitol Hill Focuses on IRS Service, Staffing, and Workforce Accountability
As Congress returns its attention to federal funding, tax administration, and workforce policy, several developments could have a direct impact on the IRS—and on the managers and management officials responsible for carrying out the agency's mission.
Taxpayer Service Remains a Congressional Priority
Congressional attention continues to focus on the IRS's ability to provide timely taxpayer service while modernizing operations and managing significant workforce changes.
The Senate Finance Committee recently advanced the bipartisan Taxpayer Assistance and Service Act, a broad package of proposed reforms addressing electronic processing, online taxpayer services, backlog and wait-time transparency, and other areas of tax administration.
While the legislation still has several steps to go before becoming law, its provisions are important for IRS managers to watch. New congressional requirements often translate quickly into operational responsibilities—from implementation and workload planning to employee training, communication, performance measures, and taxpayer-service expectations.
For managers already balancing staffing constraints and changing organizational priorities, the question is not simply what Congress requires, but whether the IRS will have the workforce, resources, and implementation time necessary to deliver it successfully.
FY 2027 Funding and Federal Pay Decisions Ahead
Federal funding remains another significant issue as Congress works toward FY 2027 appropriations. The possibility of operating under a continuing resolution creates additional uncertainty for agencies attempting to plan staffing, technology investments, training, and other operational priorities.
Federal employee pay is also an immediate issue. The Administration's alternative pay plan is due by August 31, making the next several weeks particularly important for employees and managers watching the 2027 federal pay outlook.
For the IRS, these decisions are interconnected. Funding, compensation, recruitment, retention, and taxpayer service cannot be viewed separately. Continued staffing losses or difficulty retaining experienced employees and managers can directly affect the agency's ability to meet service expectations and successfully implement modernization initiatives.
Workforce Accountability Policies Continue to Evolve
PMA is also closely monitoring significant federal workforce-policy changes, including revisions to reduction-in-force procedures and employee appeals, as well as the continuing implementation of Schedule Policy/Career.
These policies are particularly important for managers, supervisors, management officials, and non-bargaining unit employees because they could affect how agencies approach performance, personnel actions, retention decisions, workforce planning, and accountability.
As these changes move from government-wide policy into agency-level implementation, clear guidance for managers will be essential. Managers should not be left to interpret complex personnel policies without adequate training, communication, and support.
PMA's Position
IRS managers and management officials are the people responsible for translating congressional direction and agency policy into effective day-to-day operations. Expectations for taxpayer service, modernization, accountability, and performance ultimately depend upon a capable workforce—and leaders who have the resources and authority necessary to manage that workforce effectively.
PMA advocates that federal pay decisions should recognize the growing responsibilities placed on supervisors and managers. IRS cannot strengthen accountability while simultaneously making management financially less attractive. Compensation policy should support—not undermine—the recruitment and retention of experienced leaders.
PMA will continue advocating for stable and adequate IRS funding, clear implementation guidance, fair and workable workforce policies, and the resources necessary to recruit, retain, and support the leadership workforce responsible for serving America's taxpayers.
What PMA Is Watching
In the weeks ahead, PMA will continue monitoring the Taxpayer Assistance and Service Act and any further congressional action; the Administration's federal pay decision due August 31; progress toward FY 2027 funding; congressional oversight of IRS staffing, taxpayer-service performance, and modernization; implementation of revised RIF procedures and Schedule Policy/Career designations; and IRS communications and training related to FY 2027 performance-management changes.
We will continue keeping PMA members informed as these issues develop—and, most importantly, explaining what they mean for you as an IRS manager, management official, or non-bargaining unit employee.
PMA Workforce Advocacy Brief
The newest developments affecting PMA are increasingly about how IRS managers are expected to operate inside a federal workforce system where management authority, employee rights, communications rules, performance ratings, hiring decisions, and appeal processes are all changing at once.
Three issues deserve priority attention.
First, the IRS issued a new August 4 workplace-materials policy following litigation over removal of NTEU materials. The new policy generally limits communal bulletin boards and common areas to agency-sponsored materials and legally required notices, while permitting employees greater latitude in their personal workspaces. The IRS argues that the policy resolves part of NTEU's First Amendment lawsuit; NTEU says questions remain about inconsistent implementation and IRS restrictions on access to union communications.
Second, the practical consequences of ending collective bargaining at IRS are becoming clearer. NTEU has now told many affected members they must begin paying dues directly by September 5 or lose access to certain union representation, litigation remedies, and member services. Roughly half of NTEU's members work at IRS, making this a significant employee-relations development even for PMA managers who are outside the bargaining unit.
Third, the September 2 effective date for OPM's new reduction-in-force and appeal regulations is approaching quickly. Managers' performance ratings may now have far greater consequences because recent ratings become a primary factor in RIF retention standing under OPM's finalized rules.
