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North America
In 2025, the IRS experienced a 12% increase in overtime hours, primarily among employees in Taxpayer Services.. A new TIGTA report highlights that overtime costs rose by $27m, reaching $225m, as the agency faced a 25% reduction in its workforce due to resignations and retirements. “We believe that additional overtime costs were needed since the IRS had to balance increasing workforce demands with the impact of Service-wide workforce reductions,” the report stated. The Taxpayer Services division accounted for 87% of all overtime hours, with significant backlogs exacerbated by a 43-day government shutdown. TIGTA flagged 476 questionable overtime claims, indicating a lack of centralized tracking for overtime procedures within the IRS. The report did not include recommendations but noted plans to assess IRS controls over premium pay in the upcoming filing season.
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