As the government shutdown continues into its second week, the Internal Revenue Service (IRS) faces significant staffing challenges. Nearly 34,000 employees are set to be furloughed, raising concerns about the agency’s operational capabilities. In response, the IRS has implemented a contingency plan to maintain essential services during the funding lapse.
In a letter to its staff, the IRS announced that key functions related to tax enforcement, data security, and the upcoming filing season will persist despite the shutdown. However, many operations will be suspended. The contingency plan outlines how the agency will function without new congressional funding, starting Wednesday and lasting through April 30, 2026. Presently, the IRS employs approximately 74,299 people, but during the furlough, only 39,870, or around 54%, will remain on duty. The specific roles that will continue to operate remain unclear.
Among the operations that will continue are tax processing, criminal investigations, and support for disaster relief. These activities are crucial for safeguarding government revenue and are designed to protect taxpayers. However, taxpayer services, including call centers and administrative functions not directly tied to life or property protection, will be halted. This shutdown comes as the IRS prepares to handle tax matters for the upcoming season, intensifying concerns over delays and backlogs.
Doreen Greenwald, the president of the National Treasury Employees Union, emphasized the implications of the shutdown on American taxpayers. “Expect increased wait times, backlogs, and delays implementing tax law changes as the shutdown continues,” she stated. Greenwald noted that taxpayers will face significant hurdles in accessing the assistance they need, particularly as they prepare to file extension returns. Each day the shutdown prolongs adds another layer of frustration for both taxpayers and IRS employees.
Greenwald further criticized the government’s lack of communication during this crisis. “For frontline employees, the complete lack of planning left them in the dark about their work status until their supervisor informed them today,” she said. This sentiment reflects a broader discontent about how federal employees are treated amid shutdowns. Greenwald urged Congress and the administration to reach a swift agreement to restore vital services for the public.
While the IRS has indicated that furloughed employees will receive back pay once the shutdown ends, the Trump administration warned that this compensation is not guaranteed. The uncertainty around back pay adds another layer of anxiety for those affected. Earlier this year, the IRS had already begun reducing its workforce, cutting the number of employees from about 100,000 at the end of 2024 to roughly 75,000 before the shutdown’s onset.
The disruption to the IRS occurs amid a backdrop of political contention, as funding disagreements between President Trump and Congress have led to the current deadlock. This impasse further complicates the agency’s ability to serve the public. The situation reflects ongoing tensions around government spending and agency efficiency, raising questions about the long-term impacts on taxpayer services and revenue collection.
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