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Liability Insurance for Federal Employees and Contractors

IRS Budget Cut Could Lead to Increased Liability for Managers


Last year, the Biden Administration proposed funding for the IRS that would allot $80 billion over ten years with the goal of providing enforcement infrastructure that could increase IRS revenues by approximately $200 billion. However, the approved debt limit agreement as of June 2023 has lawmakers looking to take some of those funds back to help prevent budget cuts to other programs. Currently, just over $21 billion is slated to be removed from the allocated IRS budget, shortening the runway of ten years to eight.

Some argue that, because IRS auditors bring in more revenue than it costs to employ them, cutting IRS enforcement may cause the federal government to lose money. Others counter that there are other programs and initiatives in greater need of support, and the funding should be allocated to them.

Regardless of the reason, the proposed reduction in funding means IRS managers will continue to face increased workloads, heightened scrutiny, and accountability demands, increasing their exposure to allegations or complaints of wrongdoing. Where there is increased scrutiny, disciplinary action and lawsuits often follow. Regardless of position or years of service, IRS managers can find themselves needing to hire and pay for outside legal counsel to defend and dispute these matters, even if the allegation is ultimately baseless and/or out of their control. Allegations of wrongdoing concerning IRS managers could potentially be related to monetary losses to public programs, which may lead to calls for accountability from individuals, politicians, or public interest groups.

Professional vulnerability is not exclusive to IRS managers – all federal employees are at risk of allegations, lawsuits, and discipline that can derail your career and financial stability. Alleged incidents involving federal employees can lead to agency investigations. If an allegation is made against you, it is a necessity, not luxury, to have knowledgeable and effective counsel advocating on your behalf. Your agency attorney is not your attorney. It is the job of the agency attorney to defend the agency – not you. It is crucial that you have counsel that has specific experience representing federal employees with your professional vulnerabilities. As the professional liability insurance (PLI) provider endorsed by the leading federal employee associations, such as Professional Managers Association (PMA), Federal Law Enforcement Officers Association (FLEOA), and Senior Executives Association (SEA), FEDS Protection can help.

Inclusion in Action

FEDS Protection wants to celebrate those who work together from diverse backgrounds that move our country forward. These efforts are not and cannot be made alone. They are completed each day with empathy, energy, and intentionality. While some moments can be awkward, small wins can be awesome. Regardless, each inclusive action is worth the effort.

We hope each of you can play a small part in the path toward progress and continue to do so in your own way. We will continue to stand with you in this effort every step of the journey.


"Here’s a 19th Watch-out Situation for firefighters: Beware of criminal, civil, and administrative liability when something goes wrong on one of your fires, even if you’ve done absolutely nothing wrong. You can cooperate with your agency and protect yourself at the same time, but you need legal advice to accomplish these dual and sometimes conflicting goals. The fire investigation process has become a thicket of thorns, as the testimonials on this website will tell you in vivid detail. If you have professional liability insurance, keep it. If you don’t have it, get it.”– John N. Maclean (Author)


Radio & Webinars

The FEDS team hosted a webinar on Professional Liability Insurance for the Federal Executive Institute Alumni Association (FEIAA). The link is included below. Please share with a colleague and learn why Professional Liability Insurance is essential for personal and professional peace of mind! This benefit is so important, it could be partially reimbursed for many federal employees!

PLI for FEIAA members


FEDS On the Road


  • FEIAA Executive Forum (virtual)
  • FCIA 27th Annual Charity Golf Outing (Crete, IL)
  • Navy Contracting Summit (Virginia Beach, VA)
  • FedCon (Washington, D.C.)
  • NACS National Convention (Omaha, NE)



  • National Contract Managers Association World Congress (Nashville, TN)



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