IRS to Furlough Nearly Half of Its Workforce Amid Ongoing Shutdown

WASHINGTON — Nearly half of IRS employees are set to be furloughed on Wednesday due to the continuing government shutdown, as indicated by a revised contingency plan recently posted on the agency’s website. Most IRS operations will be suspended, according to a separate communication sent to staff.

This development follows the failure of President Donald Trump and Congress to come to a funding agreement, which has pushed the shutdown into its second week with no clear resolution in sight.

The agency’s contingency document outlines a plan for the first five business days and mentions the potential use of funds from the Democratic Inflation Control Act to maintain operations.

At present, only about 39,870 employees, which is roughly 53.6%, will remain on duty as the shutdown continues. However, it’s not clear which specific employees will be retained.

Doreen Greenwald, president of the Treasury Employees Union, pointed out that taxpayers should brace for longer wait times, issues with payments, and delays in implementing changes to tax laws as a result of the shutdown.

She stated, “Taxpayers nationwide will struggle even more to receive necessary assistance, especially as they prepare for extended returns due next week. Each day these workers are sidelined adds to taxpayer frustration and contributes to a growing backlog as they await the resumption of services.”

Greenwald urged both the Trump administration and Congress to “forge a deal that enables the government to reopen and delivers the services that Americans rightfully expect.”

The notice issued to employees indicated that both furloughed personnel and those still working would receive back pay once the shutdown concludes. This point stands out particularly given the Republican administration’s previous warnings on Tuesday regarding the lack of guarantees for back pay for affected federal workers.

President Trump previously indicated that about 750,000 federal employees across various departments could be furloughed, with the possibility that some may face firings under his administration.

Representatives from the IRS, Treasury Department, and the White House declined to comment on the furlough situation.

Earlier this year, the IRS had already begun significant layoffs under the Department of Government Efficiency, impacting tens of thousands of employees. By the end of 2024, the agency employed close to 100,000 individuals, but that number has now fallen to approximately 75,000.