Overview

• The updated contingency plan keeps about 39,870 IRS employees on duty—roughly 54% of the workforce—to handle excepted functions such as revenue-protecting tax processing, IT and data security, criminal investigations, bankruptcy and lien work, and disaster support.
• The agency’s initial five-day shutdown posture used Inflation Reduction Act funds, but that carryover ended and the new plan outlines staffing that could remain in place through April 30, 2026.
• Non‑excepted staff were told to stop work within four hours and received furlough notices, while union leaders described inconsistent notifications and unclear criteria about who was required to keep working.
• The IRS told workers they would receive back pay once the shutdown ends, even as a White House/OMB draft memo suggested furloughed employees may not be guaranteed compensation, and partial paychecks have begun reflecting unpaid shutdown days.
• Taxpayer services are curtailed and watchdogs warn of slower return processing, potential refund delays and weaker fraud detection as the Oct. 15 extension filing deadline approaches.