The Internal Revenue Service (IRS) has taken drastic measures as the government shutdown enters its second week, furloughing nearly half of its workforce. With the agency operating under a limited contingency plan, critical functions like tax processing, data security, and criminal investigations will continue, but taxpayer services such as call centers will be suspended. The shutdown, caused by a funding impasse between President Trump and Congress, has left many employees in uncertainty with no clear resolution in sight.
As of July 24, 2025, the IRS employed 74,299 people. During the shutdown, only 39,870 — about 54% — will stay on duty, though it’s unclear which positions will be retained. Key operations that will continue to include tax processing to safeguard government revenue, IT and data-protection systems, criminal investigations, case work involving bankruptcies and liens, and disaster-relief support. However, taxpayer services — including call centers and most administrative functions not tied to life or property protection — will be suspended.
The IRS’s Lapse Appropriations Contingency Plan outlined operations for the first five business days of the shutdown and said the agency would continue limited operations using Inflation Reduction Act funding. The furloughs stem from a funding impasse between President Donald Trump and Congress that has forced a government shutdown with no clear resolution. The Trump administration has warned that back pay for furloughed federal employees is not guaranteed, despite assurances from the IRS that employees will receive back pay once the shutdown ends.
National Treasury Employees Union President Doreen Greenwald criticized the shutdown’s impact on taxpayers, stating that the lack of planning has left frontline workers in the dark about their work status. “Every day these employees are locked out of work is another day of frustration for taxpayers and a growing backlog of work that sits and waits for the shutdown to end,” she said. The controversy has sparked calls for an agreement between the administration and Congress to restore services and reopen government operations.
Earlier this year, the IRS began a series of workforce reductions that brought total employment down from about 100,000 at the end of 2024 to roughly 75,000 before the shutdown. The Associated Press contributed to this report.