IRS to furlough nearly half of its workforce as government shutdown enters second week

WASHINGTON (AP) — The IRS will furlough nearly half of its workforce Wednesday amid the ongoing government shutdown, according to an updated contingency plan posted on its website. Most IRS operations are closed, the agency said in a separate letter to its employees.

The news comes after President Donald Trump and Congress failed to reach an agreement to fund federal operations, and the government shutdown entered its second week, with no discernible end in sight.

The agency’s initial appropriations contingency plan, which included the first five business days of operations, indicated that the department would remain open with funds from the Democrats’ Inflation Reduction Act.

Now, only 39,870 employees, or 53.6%, will continue to work for the duration of the shutdown. It is not clear which workers will remain on the job.

Doreen Greenwald, president of the National Treasury Employees Union, said in a statement that taxpayers should expect increased wait times, backlogs and delays in implementing tax law changes as the shutdown continues.

“Taxpayers across the country will now have a much harder time getting the help they need, just as they prepare to file their extension returns due next week,” she said. “Every day these employees are locked out is another day of frustration for taxpayers and a growing backlog of work waiting for the shutdown to end. »

She urged the Trump administration and Congress to “reach an agreement that would reopen the government and restore the services Americans need and deserve.”

The notice to workers states that furloughed workers and those remaining on the job will receive back pay once the shutdown ends. This is notable since the Republican administration warned Tuesday of no guarantee of back pay for federal workers affected by a government shutdown.

Last week, Trump said about 750,000 federal employees nationwide are expected to be furloughed across agencies, with some potentially laid off by his administration.

Officials from the IRS, Treasury and White House have not commented on the furlough plans.

Earlier this year, the IRS embarked on mass layoffs, led by the Department of Government Efficiency, affecting tens of thousands of workers. At the end of 2024, the agency employed around 100,000 workers – and currently that figure is around 75,000.

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