Southworth PC | Federal Employee Briefing — Friday, 04/03/2025
Attorneys for Federal Employees — Nationwide
Nearly 200,000 federal workers and supporters follow our updates across TikTok, Instagram, YouTube, Facebook, and LinkedIn. Each briefing gives you the three stories that actually matter to your job, plain‑English legal guidance, and one short practice to protect your peace of mind. If it helps you, forward it to a colleague—new readers can subscribe at https://fedlegalhelp.com/newsletter.
Today at a Glance
- The U.S. Forest Service Is Moving Its Headquarters from Washington, D.C. to Salt Lake City — and Closing All Nine Regional Offices: About 260 employees have been told to relocate or lose their jobs. All nine regional offices will close. 82% of public comments on the reorganization plan were negative. The restructuring will play out in phases through summer 2027.
- The IRS Sent Some of Its Own Employees a Notice Telling Them Their W-2s Were Wrong and They May Need to File Amended Tax Returns — Weeks Before the April 15 Deadline: A National Finance Center payroll error miscalculated the non-taxable portion of overtime wages. The IRS acknowledged many employees may have already filed. Some employees expressed alarm because maintaining tax compliance is a legal job requirement.
- The Interior Department Is Offering Employees a Third Round of Voluntary Incentives to Leave: Interior employees have now received three separate offers in quick succession — a pattern consistent with building toward a formal RIF if voluntary separation targets are not met.
Top Stories:
1. The Forest Service Is Moving Its Headquarters to Salt Lake City and Closing All Nine Regional Offices. Employees Who Won’t Relocate Lose Their Jobs.
Source: Government Executive — April 2, 2026
TL;DR: On March 31, 2026, USDA announced the U.S. Forest Service will relocate its headquarters from Washington, D.C. to Salt Lake City, Utah, as part of what the agency called a “sweeping restructuring.” About 260 of the approximately 370 Washington-based staff positions will move to Utah; 130 will remain in D.C. All nine regional offices will close and be replaced with a state-based organizational model under 15 state directors. Regional office employees were told their duty stations will change — to locations including Salt Lake City, Fort Collins, Raleigh, Kansas City, and Indianapolis — but that “the specific details, exactly where, when, and into what position, have not yet been determined.” Employees who decline their reassignment will lose their jobs. The agency said affected employees will receive transition guidance in “the coming days and weeks.” The full reorganization is expected to play out in phases through summer 2027. 82% of the more than 14,000 public comments on the reorganization plan were negative. The National Federation of Federal Employees said the agency did reach out seeking to negotiate the changes.
For federal employees, this means:
- If you are a Forest Service employee in the D.C. region or in one of the nine regional offices, your duty station is subject to change. The memo sent to regional staff stated plainly that you will be relocated to a new location — but it did not yet specify where, when, or into what position. That uncertainty is itself legally and practically significant.
- The agency’s stated position is that employees who decline a reassignment will be separated. That framing — decline and lose your job — raises the same questions raised by the Army’s rebalancing program: whether such a separation is truly voluntary, and what rights attach when an employee is effectively given a forced choice.
- This is the second major headquarters relocation of the Trump era. The Bureau of Land Management was moved to Grand Junction, Colorado in Trump’s first term, and the Biden administration moved it back. That history is relevant context for how employees should weigh long-term life decisions about relocating.
Legal Insight:
A management-directed relocation of your official duty station is a significant personnel action. If accepting the relocation requires you to move your family, if it creates an unreasonable commute, or if it conflicts with an approved reasonable accommodation for a medical condition, the relocation may be challengeable depending on the specific facts. Employees who decline a relocation and are subsequently separated may have MSPB appeal rights depending on how the separation is formally processed — particularly if it is processed as a RIF, which carries specific retention standing rights, 60-day notice requirements, and appeal timelines. Because the legal analysis depends entirely on how your specific action is framed, what notice you receive, and your individual employment history, do not accept or decline a relocation notice before talking with your union and a qualified federal employment attorney.
2. The IRS Told Some of Its Own Employees Their W-2s Were Wrong — Weeks Before April 15
Source: Federal News Network — April 1, 2026
TL;DR: In the final weeks of the 2026 tax filing season, the IRS sent some of its own employees a notice informing them that their W-2 forms contained errors. The National Finance Center — the Agriculture Department’s governmentwide payroll provider — miscalculated and underreported the non-taxable portion of overtime wages, which became deductible for the first time under the One Big Beautiful Bill Act for tax years 2025 through 2028. Affected employees received corrected W-2 forms and were told to file amended tax returns if the correction changes their total tax liability. The IRS acknowledged that many employees may have already filed. The IRS CEO told Congress in early March that filing season was going “smoothly.” Some IRS employees expressed concern because federal employees — and IRS employees in particular — are legally required to maintain tax compliance as a condition of employment.
For federal employees, this means:
- If you are an IRS employee who received this notice, read your corrected W-2 carefully. The IRS said that for most employees, the correction does not change taxable wages or withholding — but it explicitly told employees they are responsible for determining whether an amended return is required in their individual situation.
- If you already filed your return and the corrected W-2 shows a difference that changes your tax liability, you may need to file a Form 1040-X. The April 15 deadline applies to original returns — amended returns generally have a three-year window, but if you owe additional tax, the sooner you file the better to limit any interest accrual.
- More broadly, this situation — a governmentwide payroll provider sending erroneous tax forms to federal employees shortly before the filing deadline — is a systemic problem that is not unique to the IRS. If you work for any agency that uses the National Finance Center for payroll, check your own W-2 if you received overtime in 2025 and claimed the overtime deduction.
Legal Insight:
Federal employees are subject to the Standards of Ethical Conduct for Employees of the Executive Branch, which require them to satisfy tax obligations in good faith. If you received a notice of a W-2 error, take it seriously and respond to it in writing. For IRS employees specifically, the Employee Tax Compliance Program requires employees to remain in good standing. A payroll processing error that originated with a government contractor — not with the employee — should not itself constitute a compliance violation, but the employee’s response to the notice matters. If you have any concern that a W-2 error or a corrected return could affect your employment status, consider talking with a qualified federal employment attorney about your situation before the April 15 filing deadline.
3. Interior Is Offering Employees a Third Round of Voluntary Incentives — a Pattern That Typically Precedes a Formal RIF
Source: Federal News Network — April 2, 2026
TL;DR: The Interior Department is offering its employees a third round of voluntary separation incentives — VERA and VSIP offers — according to reporting published this week. Interior has now made three separate voluntary offers in relatively quick succession. The department has been in and out of court over layoff plans throughout the past year, with various court rulings temporarily blocking RIF actions and forcing the agency to pause and restart its workforce reduction efforts. The pattern — multiple rounds of voluntary offers, each time framing the departure as the employee’s choice — is consistent with an agency that is building toward a formal RIF if voluntary separation targets are not met.
For federal employees, this means:
- If you are an Interior employee who has now received a third offer, the increasing frequency of voluntary offers is itself significant information. When an agency has been trying to reduce headcount through successive voluntary rounds without reaching its targets, formal RIF proceedings become more likely — not less.
- As with every VSIP offer, the $25,000 gross payment becomes approximately $17,000 to $19,000 after taxes. The five-year repayment restriction applies if you return to federal service as an employee or contractor. Your FEHB five-year continuous enrollment requirement for carrying health insurance into retirement applies.
- If you have declined previous offers and are declining this one, document your decision in writing and retain a copy. If a formal RIF follows, your retention standing will be calculated based on tenure, veterans preference, length of service, and performance ratings — not on how many times you declined a voluntary offer.
Legal Insight:
Three rounds of voluntary offers at Interior, combined with a history of court-blocked RIF attempts, means that formal reductions in force at this agency are a realistic near-term possibility rather than a remote one. Under 5 C.F.R. Part 351, a formal RIF requires 60 days’ advance written notice, a retention register based on the four statutory factors, and the right to appeal the action to the MSPB within 30 days of the effective date of separation. If you are an Interior employee who has pending EEO complaints, a history of protected activity, or an approved disability accommodation, pay particular attention to how and when your surplus designation or RIF notice arrives relative to those facts — because timing matters significantly to any subsequent legal claim. Consider talking with your union and a qualified federal employment attorney now, before a RIF notice lands, so you understand your position before the clock starts running.
Legal Tip of the Day
When Telework Privileges Are Changed or Revoked
Telework decisions can feel discretionary, but they can also raise concerns if applied inconsistently or unfairly. Request clarification in writing about the reason for the change. Compare how policies are applied to others in similar roles. Keep records of past agreements or approvals. Our firm can help assess whether the change aligns with policy or raises legal concerns.
In Case You Missed It
A few quick hits from our recent videos and posts:
Forest Service Reorganization and Union Rights
|
HHS Layoffs and the Public Health Fallout
|
Birthright Citizenship Case and Federal Rule of Law
|
Worried About Retaliation or Being Targeted for Speaking Up?
If you’ve reported misconduct, safety concerns, discrimination, or waste/fraud/abuse—and now you’re seeing sudden schedule changes, bad performance reviews, or threats of discipline—you may be in whistleblower or retaliation territory.
We represent federal employees who:
-
Reported concerns and then saw adverse actions
-
Were sidelined, reassigned, or given impossible workloads after speaking up
-
Face investigations, PIPs, or proposed removals that look like payback
-
Need help navigating OSC complaints, EEO claims, or MSPB appeals tied to retaliation
A free, confidential consultation can help you sort out what’s normal agency behavior and what may cross the line—and what to do before your options narrow.
👉 Schedule Your Free Consultation Today
|
Disclaimer:
This briefing is for general informational purposes only and does not constitute legal advice or create an attorney‑client relationship. Federal employment law is fact‑specific and time‑sensitive; you should consult a qualified attorney about your own situation and deadlines. Past results do not guarantee future outcomes.
Your service is worth protecting. Let's protect it together at Southworth PC.
Responses