According to the Journal of Accountancy, roughly 7,000 IRS probationary employees who were laid off in February have now been reinstated but won’t immediately return to work.

An email from Acting IRS Commissioner Melanie Krause said that these workers are on paid administrative leave while court cases over the legality of their termination play out.

The reinstatement follows a federal judge’s order requiring 18 agencies to rehire 24,000 workers, with IRS employees accounting for about 30% of the total. Those reinstated will receive back pay and restored benefits, including health and life insurance, and will continue to accrue leave. 

Krause noted the IRS has not yet received a formation reduction-in-force plan from the Treasury Department, but discussion about further job cuts and agency reorganization are ongoing. Employees are being encouraged to stay informed via the IRS workforce update site and to prioritize wellness during this uncertain period. 

This development stems from two court cases—one in Maryland and one in California—challenging the administration’s mass layoffs of federal probationary employees.

While these IRS workers are technically rehired, future reductions may still impact the agency’s staffing and services as decisions unfold at the Treasury level.