The Internal Revenue Service (IRS) has notified its Fresno based employees that it will discontinue the agency's return processing operations at that center after the tax filing season gets over in 2021. The IRS runs a huge tax return processing center. Workers were notified of this decision by email sent by John Koskinen, the IRS Commissioner.
According to the IRS, about 3,000 personnel will be laid off. The service will reassign work to those willing to transfer themselves to one of the country's two remaining processing centers. It declined to say the timing of the layoffs. This cut, it assured, will not affect the other 2,700 employees working in the Fresno area. These people have employment in downtown Fresno at the IRS service center.
The reason, Koskinen said, is the rising popularity of filing by electronic means. This has helped the agency to consolidate the tax processing operations. The IRS, in addition to Fresno, has plans to stop the processing of tax returns in the future at other two centers in the future. These are the Austin, Texas and Covington, Ky centers in 2024 and 2019 respectively. These closures will save around $266 million in a span of five years. IRS has two other operational centers at Kansas City and Ogden, Utah.
Ashley Swearengin, the Mayor of Fresno, said that she is hopeful that her administration has made necessary employment prospects to counter the future losses. She said that Fresno is in demand for companies which are searching for a presence in the West Coast. She said that the city have refurbished its presence and hopefully see investments in the near future. Swearengin also said that she will interact with Representative Jim Costa; a Democrat elected from Fresno, but said that the layoffs will likely happen due to the popularity of the electronic filings. She added that her administration was grateful due to the five year heads up notice by the IRS and the retention of 2,700 jobs in the city.
Rep. Costa, through an email, announced that his first priority is to make sure that his constituents affected by the IRS step will get a fair outcome. He also said that he will try hard to make sure that the concerned IRS employees get treated fairly in the course of the consolidation process. The National Treasury Employees Union and IRS should effectively manage the consolidation process.