The Internal Revenue Service (IRS) has revealed plans to furlough nearly half of its workforce as the government shutdown enters its second week, disrupting critical tax operations nationwide. According to an updated contingency plan published on the agency’s website, only 39,870 employees—53.6% of its total staff—will remain active, with most services now suspended.
The shutdown, fueled by Senate Democrats blocking six attempts to approve a short-term funding measure, has forced the IRS to drastically reduce operations. Initially, the agency relied on prior appropriations to maintain services for five business days, but the extended stalemate has left it with no choice but to cut costs.
Doreen Greenwald, president of the National Treasury Employees Union, warned of severe consequences for taxpayers. “Taxpayers across the country will now face significant challenges accessing the assistance they need as they prepare to file extension returns due next week,” she stated. She added that prolonged delays will exacerbate existing backlogs, further straining an already overwhelmed system.
Furloughed IRS employees and those retained will receive back pay once the shutdown ends, though the Trump administration has cautioned that Congress must explicitly allocate funds for this compensation. Earlier this year, the IRS reduced its workforce from roughly 100,000 to around 75,000 through mass layoffs, compounding the current crisis.
The agency’s staffing cuts come as federal workers nationwide face uncertainty, with an estimated 750,000 employees across agencies potentially impacted by the deadlock.
