TIGTA reports telework declines amidst ongoing IRS challenges

A recent Treasury Inspector General for Tax Administration (TIGTA) report provides insight into how the IRS implemented the federal return-to-office directive and the challenges that remain. While telework has decreased significantly, the report highlights ongoing issues with monitoring and compliance.

Telework declined after federal directive

In January 2025, a federal directive required agencies to end most remote work arrangements and return employees to in-person work. In response, the IRS required employees to report to assigned offices full-time, with limited exceptions.

Telework usage dropped sharply following this change. The percentage of IRS employees reporting telework decreased from 65% to 25% within a short period, which reflects a major operational shift for the agency and its workforce.

Compliance improved but verification remains a challenge

The IRS reported strong compliance with return-to-office requirements. Internal reviews showed in-person work compliance averaged about 91%.

However, TIGTA found that verifying compliance is more complex. Only 89% of reported in-person work aligned with available access card data. This gap suggests that some reported activity cannot be fully confirmed using existing systems.

Data and monitoring gaps

A key issue identified in the report is the IRS’ ability to consistently monitor employee work locations. Access card data is not always complete or reliable. Some employees reported working in person without corresponding badge data, which may result from time coding errors or system limitations. 

Not all facilities require employees to badge in and out during the day, which limits the IRS’ ability to confirm whether employees remain on site for a full workday. Some employees are assigned to locations that do not use access card tracking systems. In these cases, the IRS cannot independently verify in-office attendance. These limitations make it difficult to rely on system data alone for oversight.

Manual review increases risk

Because of these data gaps, monitoring compliance often requires manual review. TIGTA noted that resolving discrepancies may involve reviewing time records, coordinating with managers and conducting follow-up analysis.

Manual processes increase workload and introduce the potential for inconsistency. For an organization the size of the IRS, this creates ongoing challenges in maintaining uniform oversight.

Policies still being finalized

The report also found that the IRS has not fully finalized its telework monitoring procedures.

While the IRS conducted an initial review of telework usage, formal procedures for ongoing monitoring are still being developed. TIGTA recommended that the IRS work with Treasury to establish clear expectations and complete the development of its monitoring processes.

What this means for tax professionals

Although the report focuses on internal operations, the findings can affect tax administration. System limitations and operational inefficiencies may contribute to delays, inconsistent handling of cases or increased documentation requests. Understanding these challenges can help set realistic expectations for clients.

Key takeaways

Several points stand out from the report:

• Telework usage declined significantly after the return-to-office directive. 
• Compliance with in-person work requirements is high but not fully verifiable. 
• Data limitations affect the IRS’ ability to monitor employee activity. 
• Manual review processes increase workload and risk of inconsistency. 
• Telework monitoring procedures are still under development. 

Final thoughts

The IRS has made significant changes to its telework policies, but challenges remain. Gaps in data systems, inconsistent tracking and unfinished procedures continue to affect oversight.

IRS operations are still evolving and these internal challenges may affect how the agency processes work and responds to taxpayers.