Topline
The Internal Revenue Service furloughed nearly half its workforce Wednesday as the Senate failed for a sixth time to reopen the federal government.
A sign is displayed outside of the Internal Revenue Service (IRS) Building on June 7, 2025 in Washington, DC. (Photo by Kevin Carter/Getty Images)
Getty Images
Key Facts
The IRS said about 34,000 of its 74,299 employees will be furloughed after its original contingency plan to pay workers using leftover Biden administration funding expired, the agency said in a notice posted to its website.
The agency will continue prep for the 2026 tax filing season and implementation of President Donald Trump’s tax cuts—including no taxes on tips—while non-automated tax collections and some taxpayer services, such as call center operations, will be suspended.
Activities that will continue include: income verification services, budget matters related to the shutdown, processing of retirement packages, background investigations, disaster relief transcripts, those required to maintain safety of IRS buildings and other property, and functions related the shutdown, such as payroll functions.
Those that will be suspended include: processing non-disaster relief transcripts, legal counsel, most headquarters and administrative functions, and most planning, research, training and development activities.
Chief Critic
National Treasury Employees Union head Doreen Greenwald criticized the move in a statement to Politico that said taxpayers should “expect increased wait times, backlogs and delays implementing tax law changes as the shutdown continues,” adding “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.”
Key Background
The government shutdown will stretch into a ninth day Thursday after the Senate failed for a sixth time to approve both GOP- and Democratic-backed funding plans, with neither party showing any signs they’re willing to negotiate. President Donald Trump’s administration, meanwhile, has warned that furloughed federal workers might not receive back pay when the government reopens, according to its interpretation of a 2019 law passed during Trump’s first term.
Further Reading
Government Shutdown: Senate Blocks Bills To Reopen Government (Forbes)
Trump Will Meet Budget Chief ‘To Determine Which Of The Many Democrat Agendas’ He’ll Cut During Shutdown (Forbes)
Democrats Could Benefit From A Government Shutdown—Here’s Why (Forbes)
Source: https://www.forbes.com/sites/saradorn/2025/10/08/irs-furloughs-nearly-half-of-its-staff-amid-government-shutdown-heres-whats-impacted/
