IRS will furlough nearly half of its workforce as the government shutdown enters a second week

Washington– The IRS will furlough nearly half of its workforce Wednesday as part of the ongoing government shutdown, according to an updated contingency plan posted on its website. The agency said in a separate letter to its employees that most IRS operations are closed.

This news comes after President Donald Trump and Congress failed to reach an agreement to fund federal operations, and the government shutdown entered its second week, with no clear end in sight.

The initial emergency plan for lapsed appropriations, which provided for the first five business days of operations, said the department would remain open using Democrats-passed Inflation Reduction Act funds.

Now, only 39,870 employees, or 53.6%, will remain working as the closure continues. It is unclear which workers will remain on the job.

Taxpayers should expect increased wait times, backlogs and delays in implementing tax law changes as the shutdown continues, Doreen Greenwald, president of the National Treasury Employees Union, said in a statement.

“Taxpayers across the country will now have a harder time getting the help they need as they prepare to file their scheduled extension returns next week,” she said. “Every day these employees are prevented from working is another day of frustration for taxpayers and a growing backlog of work waiting for the shutdown to end.”

She urged the Trump administration and Congress to “reach an agreement that reopens the government and restores the services Americans need and deserve.”

The notice to workers states that furloughed workers and those who remain on the job will receive their wages once the lockdown ends. This is notable since the Republican administration warned Tuesday that federal employees affected by the government shutdown will not be guaranteed back wages.

Last week, Trump said nearly 750,000 federal workers across the country are expected to be furloughed across agencies, with some potentially fired by his administration.

Representatives for the IRS, Treasury and White House did not comment on the furlough plans.

Earlier this year, the IRS embarked on mass layoffs, led by the government’s Department of Efficiency, affecting tens of thousands of workers. At the end of 2024, the agency employed nearly 100,000 workers – currently that number stands at about 75,000.