The Internal Revenue Service entered the 2026 filing season without meeting key hiring goals for employees responsible for processing tax returns and assisting taxpayers. According to the Treasury Inspector General for Tax Administration (TIGTA), the IRS filled only about 42% of its authorized hiring goal for tax return processing positions and fell approximately 34% short of its hiring target for taxpayer assistance employees.
To maintain operations, the IRS relied on overtime and temporarily reassigned hundreds of employees from other functions to support filing season workloads. TIGTA also reported that staffing shortages led the agency to lower certain taxpayer service performance expectations, while backlogs increased in several return processing programs.
For all federal employees, staffing shortages often translate into increased workloads, compressed timelines, and heightened scrutiny. In an environment where every decision may later be reviewed, a professional liability insurance (PLI) policy from FEDS Protection can help protect the career you’ve worked hard for.
Increased Workload Means Increased Exposure
Periods of understaffing can create challenges well beyond customer service. Federal employees may be asked to assume additional responsibilities, work overtime, or support unfamiliar assignments while continuing to meet demanding performance expectations.
At the same time, tax administration remains subject to intense oversight from Congress, inspectors general, the courts, taxpayers, and the media. Decisions involving examinations, collections, enforcement actions, and taxpayer interactions may be questioned long after the work is completed.
Even experienced federal employees can face allegations and ethics complaints when workloads increase and resources become strained. Administrative investigations, disciplinary actions, and personal-capacity lawsuits can arise even when federal employees believe they acted appropriately and in good faith.
Protecting Yourself While Protecting the Mission
Federal employees cannot always control staffing levels, hiring delays, or shifting priorities. They can, however, prepare for the possibility that a difficult assignment or increased workload could lead to allegations of wrongdoing.
If an allegation is made against you, having experienced legal representation can make a significant difference. A professional liability insurance (PLI) policy from FEDS Protection helps ensure you have knowledgeable counsel available if you face an administrative investigation, disciplinary action, or civil lawsuit arising from your official duties.
FEDS PLI for Federal Employees
As the professional liability insurance (PLI) provider endorsed by the leading federal employee associations, FEDS Protection offers federal employee PLI policies with $1,000,000, $2,000,000, or $3,000,000 in civil liability protection per incident for attorney fees and indemnity costs if you are sued in your individual capacity.
The FEDS policy also includes:
- Up to $200,000 in per incident legal representation coverage for administrative and disciplinary matters
- Up to $100,000 in per incident criminal defense coverage
- Access to experienced attorneys who understand federal employment matters
Annual premiums start at $290. Additionally, many federal managers, supervisors, and law enforcement officers may be eligible for agency reimbursement of up to 50% of their PLI premium.
If you need assistance renewing your policy or accessing your Certificate of Insurance, please Contact Us or call 866-955-3337, Monday–Friday, 8:30 a.m.–6:00 p.m. (ET)
This article is provided for informational purposes only and does not constitute legal advice. Coverage is subject to policy terms, conditions, limitations, and exclusions.
Are You Leaving Federal Service and Considering Government Contracting?
If yes, consider FEDS Protection for your government contracting insurance needs. At FEDS Protection, we also support federal contractors by providing insurance coverage specifically tailored to meet the unique needs of today’s federal contractors. Our civil-only PLI policy can provide coverage for legal defense costs and liability damages, up to the policy limit, if you are sued for an alleged act, error, or omission arising out of professional services performed under a federal government contract, either directly or through your employer.
Whether you are required to carry professional liability (E&O) insurance under a federal contract or just want to protect your livelihood, our policy is designed specifically for federal and independent contractors.
Did You Know?
The United States Department of Housing and Urban Development (HUD) was established in September 1957 to provide decent and safe rental housing for eligible low-income families, the elderly, and persons with disabilities.
We are grateful for the work of the civil servants throughout the agency who strive to provide homeownership support to communities across the country. FEDS Protection is the leading provider of professional liability insurance to the federal community. We have proudly provided peace of mind to the federal workforce for nearly two decades. We appreciate your business and celebrate your dedication to public service not only this year, but for years to come.
Testimonials
“I have always recommended PLI to my colleagues but never thought I’d need it. With less than two months before my retirement, I was the subject of a DoD/OIG whistleblower reprisal investigation. FEDS Protection quickly provided me with excellent, experienced legal representation that helped me through the investigation, which resulted in the claims being unsubstantiated. I will continue to recommend FEDS Protection to those serving in government, as you never know when it will be needed.”
- Former Deputy Assistant Secretary of Defense
Presentations & Webinars
Contact us if you are interested in a webinar or receiving brochures that provide federal employees with best practices on how to protect themselves with a federal employee professional liability insurance policy like those offered by FEDS Protection. FEDS Protection webinars are a valuable resource for learning more about the specific professional exposures of federal employees, PLI in general, and the FEDS Protection program. Check out our library to access content that speaks to your position in the federal government.
Recent Webinars
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