IRS Workforce Plummets as Government Shutdown Enters Second Week

IRS Workforce Plummets as Government Shutdown Enters Second Week

As the government shutdown stretches into its second week, the Internal Revenue Service has announced that it will furlough nearly half of its workforce, affecting approximately 34,000 employees. The agency has laid out a contingency plan to maintain essential tax enforcement, data security, and filing operations even amidst the lack of congressional funding.

In a communication sent to employees on Wednesday, IRS officials disclosed that most operations would be significantly scaled back. This contingency plan, effective Wednesday, will remain in place until April 30, 2026, outlining how the agency intends to function without new funds from Congress.

As of July 24, 2025, the IRS had a total staff of 74,299. During the current shutdown, only 39,870 employees, roughly 54% of the workforce, will remain on duty. The specific positions that will be maintained remain unclear.

Key Operations to Continue Amid Reductions

Despite the drastic reductions in staff, several critical operations will still proceed. These include tax processing aimed at safeguarding government revenue, IT and data protection systems, ongoing criminal investigations, and case work related to bankruptcies and liens. Additionally, the IRS will provide disaster relief support. However, most taxpayer services, including call centers and other administrative functions not directly related to life or property protection, will be halted.

Impacts of the Government Shutdown

The IRS’s Lapse Appropriations Contingency Plan, which was issued at the start of the shutdown, outlined operational procedures for the initial five business days. Although the agency will continue limited operations, it relies on specific funding from the Inflation Reduction Act.

The furloughs stem from a standoff between the President and Congress regarding funding. This impasse has resulted in a government shutdown without an apparent resolution in sight.

Concerns from Union Leaders

Doreen Greenwald, the President of the National Treasury Employees Union, expressed concerns over the shutdown, noting it deprives Americans of essential IRS services. She stated, “Expect increased wait times, backlogs, and delays in the implementation of tax law changes as the shutdown continues. Taxpayers across the nation will now face significant challenges in obtaining the assistance they need, especially as they prepare to file extension returns due next week. Every day that these employees remain locked out represents a growing backlog and frustration for taxpayers.”

Guarantees of Pay and Workforce Reductions

IRS employees have been informed they will receive back pay once the shutdown is lifted; however, the Trump administration has announced that this compensation is not guaranteed for furloughed federal workers.

This shutdown coincides with previously announced workforce reductions by the IRS, which have seen total employment decrease from approximately 100,000 at the close of 2024 to about 75,000 prior to the shutdown.

Government’s Treatment of Employees Under Scrutiny

Greenwald criticized the treatment of frontline employees, pointing out the lack of clear communication regarding their work status. “The absence of planning left dedicated public servants in the dark until their supervisors made announcements,” she said. “This is not how our government should treat its nonpartisan employees. We strongly urge the administration and Congress to reach a consensus to reopen government and restore necessary services for the American public.”

As the situation develops, taxpayers and IRS employees alike will be closely monitoring negotiations in Washington to see if an agreement can be reached that benefits both parties involved. The ongoing shutdown has revealed systemic vulnerabilities within the government’s approach to funding and employee management, highlighting the need for more effective planning in the face of legislative impasses.

Overall, the current shutdown emphasizes the critical balance between fiscal responsibility and the operational needs of essential government departments like the IRS. As negotiations unfold, the implications for tax policy, enforcement, and public service delivery will remain at the forefront of public discourse.

Reporting from The Associated Press contributed to this overview of the ongoing IRS workforce situation amidst the governmental impasse.