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IRS furloughs nearly half its workforce as government shutdown continues

The reduced workforce could impact the agency's ability to process tax returns, respond to taxpayer inquiries, and carry out enforcement activities during a critical period leading up to tax season.
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The Internal Revenue Service is furloughing nearly half of its more than 74,000 employees as the government shutdown continues into its ninth day.

The move is part of the IRS's updated shutdown contingency plan, marking a significant shift from the agency's original strategy. Previously, the IRS said its entire workforce would remain on the job using funds from the 2022 Inflation Reduction Act.

However, that original plan only covered the initial five business days of a shutdown. With the closure extending longer, the agency has been forced to implement deeper staffing cuts.

The new staffing levels are expected to remain in effect through April.

RELATED STORY | Paychecks, flights, economy face growing strain from prolonged government shutdown

The furloughs come as the IRS has been implementing tax law changes from the Trump administration's "One Big Beautiful Bill Act" passed by Congress.

The reduced workforce could impact the agency's ability to process tax returns, respond to taxpayer inquiries, and carry out enforcement activities during a critical period leading up to tax season.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.

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