IRS details shutdown plan: ~34,000 furloughed; essential tax operations continue as back-pay dispute persists
Under a contingency plan that runs through April 30, 2026, the IRS will furlough roughly 34,000 employees—leaving about 39,870 (54% of its 74,299 workforce) on duty—to continue revenue-protective tax processing, IT/data security, criminal investigations, bankruptcy/lien work and disaster-relief support while suspending call centers and most non–life-or-property administrative services. A dispute over furlough back pay persists: the IRS has told employees back pay is guaranteed, but White House/OMB memos and other administration signals say back pay may not be automatic for some workers, raising concerns about longer waits and growing backlogs.
Government/Regulatory
Economy
Politics
📌 Key Facts
- The IRS contingency plan will furlough about 34,000 employees, leaving roughly 54% of its workforce (39,870 of 74,299) on duty.
- The plan takes effect Wednesday and is set to run through April 30, 2026.
- Essential functions to continue include revenue-protective tax processing, IT/data security, criminal investigations, bankruptcy/lien cases, and disaster-relief support; most taxpayer services (including call centers) and non–life-or-property administrative functions are suspended.
- The IRS told employees furlough back pay is guaranteed, but a White House/OMB memo and administration officials say back pay may not be automatic, creating a direct clash between IRS guidance and the White House stance.
- The IRS says it will use Inflation Reduction Act funds to sustain limited operations and has outlined actions for the first five business days of the shutdown.
- NTEU President Doreen Greenwald warned the shutdown will lead to longer wait times for taxpayers and growing backlogs.
📚 Contextual Background
- Furloughed federal employees typically return to work and receive back pay once Congress resolves a government shutdown.
- A continuing resolution (CR) is a short-term funding measure used to keep the federal government open temporarily while Congress completes the appropriations process.
📰 Sources (3)
IRS workforce slashed in half as government shutdown showdown stretches into second week
New information:
- IRS contingency plan leaves about 54% of its workforce (39,870 of 74,299) on duty, furloughing nearly 34,000 employees.
- Plan takes effect Wednesday and runs through April 30, 2026.
- Essential functions to continue include revenue-protective tax processing, IT/data security, criminal investigations, bankruptcy/lien cases, and disaster-relief support.
- Taxpayer services such as call centers and most non–life-or-property administrative functions are suspended.
- IRS will use Inflation Reduction Act funds to sustain limited operations and outlined actions for the first five business days of the shutdown.
- NTEU President Doreen Greenwald warned of longer wait times and growing backlogs; AP reported IRS told employees they will receive back pay, while the administration has warned back pay is not guaranteed.
IRS tells employees furlough backpay guaranteed, while WH counters in memo
New information:
- Axios reports the IRS informed employees that furloughed back pay is guaranteed.
- The article cites a White House/OMB memo that counters this position, indicating back pay may not be automatic.
- Highlights a direct clash between IRS internal guidance and the White House stance during the shutdown.