IRS to furlough nearly half its workforce as shutdown drags on
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The Internal Revenue Service announced that it will be furloughing over 34,000 employees, which constitutes approximately 46% of its staff, starting Wednesday as the government shutdown extends into the second week.

Additionally, the agency will temporarily halt many taxpayer services, including answering phone calls. Due to the funding lapse, the independent Taxpayer Advocate Service will also suspend operations.

The agency added that most administrative functions will also come to a halt, as will many planning activities.

“Today, because of the government shutdown, the American public lost access to numerous essential services provided by the IRS when the agency furloughed thousands of staff,” stated Doreen Greenwald, president of the National Treasury Employees Union.

She added that Americans can now expect longer wait times, delays in tax code modifications, and backlogs. “Taxpayers nationwide will face greater challenges in obtaining the assistance they need, just as they prepare to file their extension returns due next week.”

Despite the government shutdown, filing deadlines remain in effect for taxpayers. The deadline for individuals who requested an extension on their 2024 taxes is October 15.

Greenwald remarked that many employees experienced a “lack of planning” regarding their employment status until they were informed by supervisors and managers about the furloughs on Wednesday.

“This is not the way our government should treat its dedicated nonpartisan public servants,” she added.

Furloughs are a temporary unpaid leave. Workers are expected to return to their roles once government funding is replenished by Congress. Historically, workers who remain on the job can be unpaid but receive back pay once the shutdown is resolved.

President Donald Trump and his administration have threatened permanent job cuts and back pay denials in addition to furloughs. On Tuesday, a draft White House memo came to light in which the administration argued that federal workers may not be entitled to back pay. It’s unclear whether it’s part of negotiating tactics, however.

Few operations will continue, although nearly 40,000 employees will remain paid and on the job preparing for the coming tax season, according to a shutdown plan released Wednesday.

IRS functions that are required to keep the Social Security ministration running will also continue.

The IRS declined to comment beyond the shutdown plan.

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