The IRS is furloughing 34,000 employees as the government shutdown continues across the country

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Nearly half of the IRS workforce — nearly 34,000 employees — face furloughs due to… Government shutdown Entering its second week, the agency is rolling out a contingency plan to keep key tax enforcement, data security and filing season operations running despite a cut in congressional funding.

In a letter to employees on Wednesday, the agency said most operations would cease. The emergency plan, which goes into effect Wednesday and lasts through April 30, 2026, details how the IRS will operate without new funding from Congress.

As of July 24, 2025, the IRS employed 74,299 people. During the closure period, only 39,870 – about 54% – will remain in service, although it is unclear what positions will be retained.

Key processes that will continue to be included Tax treatment For government revenue protection, IT and data protection systems, criminal investigations, casework involving bankruptcy and liens, and disaster relief support. However, taxpayer services will be suspended – including call centers and most administrative functions not related to the protection of life or property.

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Internal Revenue Service building sign with the American flag flying in the background

An Internal Revenue Service sign in Washington, D.C. (Kayla Bartkowski/Getty Images)

The IRS’s expiration contingency plan limited operations during the first five business days of the shutdown and said the agency would continue limited operations using FRA funding.

Leaves stem from a Funding crisis between President Donald Trump and Congress Which led to the government shutdown without a clear solution.

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Capitol building

Nearly half of the IRS workforce — nearly 34,000 employees — faces furloughs as the government shutdown enters its second week. (Fox News Digital/Emma Woodhead)

National Treasury Employees Union President Doreen Greenwald He said the shutdown cut Americans off from vital IRS services.

“Expect increased wait times, backlogs and delays in implementation Tax law changes “As the shutdown continues, taxpayers across the country will now have a harder time getting the help they need, just as they prepare to file their extension returns scheduled for next week,” she said. Every day that these employees are prevented from working is another day of frustration for taxpayers and a growing backlog of work waiting for the shutdown to end.

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The sign shows that the National Gallery of Art is closed during the government shutdown

A sign outside the National Gallery of Art informs visitors that it is closed due to the government shutdown in Washington, DC (AP Photo/Jose Luis Magaña)

“For front-line employees, the complete lack of planning left them in limbo about their work status until their supervisor informed them today,” Greenwald added. “This is not how our government should treat its dedicated, nonpartisan public servants. We urge the administration and Congress to reach an agreement that reopens the government and restores the services Americans need and deserve.”

According to the Associated Press, the IRS told employees they would receive their paychecks as soon as the shutdown ended. The Trump administration warned Tuesday that back pay for furloughed federal employees is not guaranteed.

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Earlier this year, the IRS began a series of workforce reductions that brought total employment down from about 100,000 at the end of 2024 to roughly 75,000 before the shutdown.

The Associated Press contributed to this report.



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