The IRS will furlough nearly half of its workforce starting Wednesday due to the ongoing government shutdown, per an updated contingency plan on its website. Most IRS operations are currently closed, impacting taxpayer services nationwide.
The shutdown entered its second week after President Trump and Congress failed to agree on funding federal operations. Initially, the IRS had continued operations using Inflation Reduction Act funds, but now only about 53.6% (roughly 39,870 employees) remain working. The specific roles of those retained are unclear.
Doreen Greenwald, president of the National Treasury Employees Union, warned that taxpayers should expect longer wait times, growing backlogs, and delays in implementing tax law changes, especially with tax extension returns due soon. She called on the administration and Congress to resolve the shutdown promptly to restore vital services.
The IRS has assured that both furloughed and working employees will receive back pay once the shutdown ends, despite prior warnings from the administration about no guaranteed pay during shutdowns.
Earlier this year, the IRS underwent significant layoffs, reducing its workforce from around 100,000 to approximately 75,000 employees by the end of 2024. The current furloughs will further impact staffing and operations at the agency.
