IRS Furloughs Half Its Workforce Amid Government Shutdown

The Internal Revenue Service announced plans to furlough nearly half of its workforce as the federal government shutdown enters its second week. According to an updated contingency plan posted Wednesday on the agency's website, approximately 39,870 employees, representing 53.6% of staff, will continue working while the remainder face temporary unpaid leave. The IRS indicated that most of its operations have ceased during this period.

The shutdown stems from an unresolved funding disagreement between President Donald Trump and Congress, with no clear resolution timeline established. The IRS had initially operated for five business days using funds from the Inflation Reduction Act, according to the agency's initial contingency plan. The current furloughs represent the latest development in the ongoing appropriations lapse affecting multiple federal departments.

President Trump previously stated that approximately 750,000 federal workers nationwide would face furloughs across various agencies during the shutdown. The president also indicated that some federal employees could potentially be terminated by his administration. These temporary layoffs follow earlier workforce reductions at the IRS during 2025, reportedly coordinated through the Department of Government Efficiency.

Prior to the current situation, the IRS had already experienced significant staffing changes. The agency employed approximately 100,000 workers at the end of 2024, but that number had decreased to roughly 75,000 before the shutdown began. The furloughs represent a continuation of workforce challenges for the tax agency, which now operates with substantially reduced personnel during a period of suspended government funding.