The Internal Revenue Service (IRS) has announced a significant furlough of nearly half its workforce and the shutdown of most operations in response to the government shutdown. The decision impacts approximately 34,423 employees, with 39,870 remaining to ensure essential functions are maintained. The move comes amidst heightened criticism from labor unions, which have expressed concerns over the impact on taxpayer services.
While the IRS continues its efforts to implement President Donald Trump’s signature tax cuts, many critical taxpayer services, such as call center operations and non-automated tax collections, will be suspended during the furlough period. The agency’s actions have sparked concern among union representatives, who warn of potential delays in tax assistance and the impact on ongoing filings for next year’s tax season.
The union that represents IRS workers has condemned the move, with Doreen Greenwald, the national president of the National Treasury Employees Union, stating that due to the government shutdown, the American people have lost access to many vital services provided by the IRS. She warns of increased wait times, backlogs, and delays in implementing tax law changes as the shutdown continues, emphasizing that taxpayers around the country will now have a much harder time getting the assistance they need, especially as they prepare to file their extension returns due next week.
When the government shut down last week, the agency initially exempted all of its employees from furlough for at least five business days, claiming it would stay open through special funding allocated by Congress in 2020. However, on Wednesday morning, the agency announced that an IRS-wide furlough had begun, affecting everyone except those already identified as exempt or excepted. The statement on the IRS’s website clarified that employees not exempt or excepted would be furloughed and placed in a non-pay and non-duty status until further notice.
The IRS’s furlough decision letter, which came a day after a White House memo suggested that furloughed federal employees might not receive backpay, includes a reminder that employees must be compensated on the earliest date possible after the lapse ends, regardless of scheduled pay dates. This instruction aligns with a law passed by President Trump in 2019, which mandates prompt compensation for furloughed employees. The Treasury Department did not immediately respond to a request for comment.
The agency originally resisted furloughs in part because it bore responsibility for implementing the administration’s signature tax cuts, including provisions that eliminate taxes on tips, overtime, and Social Security, which Republicans are counting on for a boost in next year’s midterm elections. Daniel Scharpenburg, a union leader at the IRS, commented that he suspects people will be getting notified all day about the changes affecting their employment status during the furlough.