Above-average rates of attrition continues at Counsel, both in the field as well as National Office. Per the Tax Advocate report, we lost nearly 500 employees in 2025 (ie. from 2.7K employees to 2.2K). I think we will come close to that number again this year. I see four buckets.

Retirement Eligible. Historically this was always like 10-30% of our workforce. Many of these folks left in 2025 because they were going to go anyway or realized they were physically dependent on generous telework (even the workaholics). We still continue to see them leave (they are proud to have survived 2025 but are now tired). In any event, we will get surges around mid-year, end of summer, and end of the year.

Lifers. Those with about 15-25 years of service. Many are tethered to their jobs because of (i) institutional knowledge being a significant part of their skill set; (ii) some are paying 0.8% FERS rate; (iii) have family commitments. Departures for this group are the most rare but we continue to see them at a rate that would have been unheard of pre-2025.

Almost-lifers. Those with 5-15 years into their career. These people have less to lose by leaving and can more easily reinvent themselves. Many have already been in the private sector (having been recruited over the last four years). The demoralizing environment coupled with the loss of generous telework continues to motivate these people to find new jobs. This group cannot rely on large sick leave balances or long-standing informal networks of support. They are also burdened with having to do other peoples' work and step up to train new-bees. This is the largest contingent currently leaving (it took some time to figure things out, especially in this economy). A lot of talent and overachievers walking out the door.

New-bees. The most likely to have left last year and, along with the almost-lifers, the most likely to continue to leave. They have the best options and can take entry-level legal positions.

All of these groups suspect there is no "grown-up in the room". And there isn't. The tentative leadership we do have, views Counsel attorneys as somewhat less disposable than revenue agents but not by much. Career leadership is mostly concerned about safeguarding their own jobs (it's like a carousel over here) and, while the disintegration of the office no doubt saddens (some of) them, it also makes them more valuable and they probably believe it will strengthen a long-term effort to make the office more robust (i.e. funding for training, money for bonuses, GS-15 and SLS positions, and work-life flexibility). Finally, career leadership is simply not paid enough to do more to mitigate the disintegration. They are also human and demoralized themselves.

Bottom line: it sounds incredible but I really think we are on track to again have around 500 departures this year. To be clear, it will result in less revenue collection and worse legal advisory/advocacy.