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IRS Furloughs Over 34,000 Employees Amid Government Shutdown, Taxpayer Services Impacted
WASHINGTON D.C. – As the federal government shutdown stretches into its second week, the Internal Revenue Service (IRS) has announced it is placing more than 34,000 employees, roughly 46% of its workforce, on furlough beginning Wednesday. The move is expected to significantly curtail taxpayer services and administrative functions.
Among the services temporarily paused are the agency’s ability to answer phone calls and the operations of the independent Taxpayer Advocate Service, which assists taxpayers with complex issues. Most administrative and planning activities within the IRS will also come to a halt due to the lapse in funding.
Doreen Greenwald, President of the National Treasury Employees Union, expressed concern over the decision. “Today, due to the government shutdown the American people lost access to many vital services provided by the IRS when the agency furloughed thousands of employees,” Greenwald stated.
She warned that Americans should anticipate longer wait times, delays in tax code changes, and accumulating backlogs. “Taxpayers around the country will now have a much harder time getting the assistance they need, just as they get ready to file their extension returns due next week.”
It is crucial for taxpayers to remember that filing deadlines remain in effect despite the shutdown. Specifically, October 15 is the deadline for individuals who secured extensions on their 2024 tax filings.
Greenwald also criticized the handling of the furloughs, noting that many employees faced a “lack of planning” regarding their job status until supervisors informed them on Wednesday. “This is not the way our government should treat its dedicated nonpartisan public servants,” she added.
Furloughs represent a temporary, unpaid leave of absence, with workers typically expected to return once Congress restores government funding. Historically, federal employees who remain on the job without pay during a shutdown have received back pay once the resolution is reached. However, the current administration has reportedly threatened permanent job cuts and denials of back pay, though it remains unclear if these are negotiating tactics.
Despite the widespread furloughs, a limited number of operations will continue. Nearly 40,000 employees will remain paid and on the job to prepare for the upcoming tax season, according to a shutdown plan released Wednesday. Additionally, IRS functions deemed essential for the continuous operation of the Social Security Administration will also proceed.
The IRS declined to offer further comment beyond the details outlined in its shutdown plan.