# IRS Applies OPM Performance Rating Cap

The IRS is applying OPM’s FY2026 guidance capping the highest performance ratings at no more than 40% of General Schedule employees as managers finalize ratings. Alongside staff reassignments intended to address taxpayer-service backlogs, the ratings policy may affect employee morale, retention, and continuity of IRS services. The signal identifies no contract, solicitation, or direct procurement opportunity.

- For contractors supporting IRS operations, possible workforce and service-continuity effects are relevant context for delivery planning, but the signal does not identify a specific contract impact or required contractor action.
- Procurement professionals should distinguish this federal workforce-management change from a procurement notice: no solicitation, award, funding, or vendor action is reported.

**Jurisdictions:** federal
**Published:** October 26, 2026

### Government Entities
- Internal Revenue Service (IRS)
- Office of Personnel Management (OPM)
- U.S. Department of the Treasury (Treasury)

### Key Quotes
> an arbitrary cap on the highest category of ratings undermines morale and makes it harder to retain the skilled employees who deliver those services.
> — Doreen Greenwald, National President of the National Treasury Employees Union

### Sources
- [IRS says it needs top performers, even if they don’t all get the performance ratings they deserve  - Government Executive](https://www.govexec.com/management/2026/10/irs-top-performers-performance-ratings/416825) - GovExec.com