The Internal Revenue Service (IRS) has begun furloughing nearly 34,000 employees—almost half its workforce—due to the ongoing government shutdown. Approximately 39,870 staff remain at work while most IRS operations are suspended amid the funding stalemate in Congress.
This move comes on the eighth day of the shutdown, following repeated failures in the Senate to pass funding measures. The IRS informed employees that “most IRS operations are closed” and that the furlough, effective October 8, excludes only excepted or exempt staff. Those furloughed are on unpaid leave but were advised to be ready to return when called.
The furlough occurs amid earlier workforce cuts that reduced IRS staff by about 25% since President Trump’s return to office in January, shrinking from around 100,000 to 75,000 employees. These reductions have hit key functions dealing with tax processing, fraud detection, and taxpayer assistance, raising concerns over delays and backlogs.
Although electronic tax returns and refund processing continue, many services such as phone support, paper filings, audits, and enforcement have been paused. Taxpayers must still meet the October 15 filing deadline, despite the disruptions.
Furloughed workers were assured in letters they will receive back pay once the shutdown ends, despite initial uncertainty from the administration on the issue. The continued impasse leaves the IRS struggling to deliver critical services with limited resources during an unsettled government funding crisis.