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IRS Furloughs Nearly Half Its Staff as Shutdown Shutters Many Taxpayer Services

A funding lapse has triggered wide service cuts, with a dispute over guaranteed back pay unsettling federal workers.

Overview

  • About 34,000 employees — roughly 46% of the workforce — were furloughed starting Wednesday, while around 39,870 remain on duty under the IRS contingency plan.
  • Call centers and most administrative functions are paused, and the independent Taxpayer Advocate Service has ceased operations during the funding lapse.
  • Essential work continues, including income verification, Social Security–related support, payroll, building safety and preparations for the 2026 filing season.
  • An IRS letter tells staff they will receive back pay once funding is restored, but a White House draft memo argues workers may not be entitled to it.
  • Filing deadlines remain in effect, with Oct. 15 the due date for 2024 extension filers, and the federal employees union warns of longer waits and growing backlogs.