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The Internal Revenue Service (IRS) plans to furlough approximately 35,000 employees if the U.S. government shutdown lasts longer than five business days, reducing its workforce to about 40,000 staff members essential to critical operations.
This number represents almost half of the agency’s total workforce of roughly 75,000, according to Bloomberg Tax.
The IRS has entered its fourth day of operating under a contingency plan as the federal government shutdown continues.
Essential Staff to Continue Working
Those who will remain on the job include employees handling filing season activities, legislative implementation, and IT modernization efforts. This approach aligns with contingency plans used during previous shutdowns in 2018 and 2019, where a similar portion of the workforce stayed active to maintain core IRS functions.
Impact on IRS Services
The planned furloughs mark a change from the current strategy of maintaining normal operations for the first five days of a shutdown by using funds from the 2022 tax-and-climate law. Historically, furloughs have halted audit functions, return examinations, manual collections, and taxpayer phone support, which could disrupt services as the October 15 tax filing deadline for individuals and businesses approaches.
Stakeholder Concerns and Political Stalemate
The American Institute of CPAs has urged the IRS to keep its full workforce operational throughout any shutdown to avoid exacerbating taxpayer stress during the busy filing season.
Meanwhile, Congress remains deadlocked, with Republicans calling for an extension of current funding and Democrats demanding fiscal policy changes focused on healthcare.
