Amid the ongoing federal government shutdown, the IRS announced that “most” of its operations have been suspended. The agency stated, “Due to the lapse in appropriations, most IRS operations are closed. An IRS-wide furlough began on October 8, 2025, for everyone except already-identified excepted and exempt employees.” The notice added that non-exempt and non-exceptional employees were placed in a “non-pay and non-duty status until further notice,” though all staff were instructed to return for their next scheduled shift. Employees were given up to four hours to finalize work tasks and receive formal furlough notifications.
The IRS, which has updated its contingency plans, plans to retain 53% of its workforce during the shutdown, with most positions focused on public-facing taxpayer services. Initially, the agency kept all employees active for the first five business days of the funding lapse but did not outline procedures for an extended shutdown beyond October 7.
Doreen Greenwald, president of the National Treasury Employees Union, criticized the situation, stating, “Taxpayers around the country will now have a much harder time getting the assistance they need, just as they get ready to file their extension returns due next week.” She emphasized that prolonged furloughs would lead to increased taxpayer frustration and growing work backlogs. Greenwald urged the Trump administration and Congress to resolve the shutdown to restore essential services.
The notice to workers confirmed that furloughed employees and those remaining on duty would receive back pay once the shutdown ends. This contrasts with earlier warnings from the Republican administration about potential uncertainty regarding compensation for federal workers. Last week, Trump projected that approximately 750,000 federal employees nationwide could face furloughs or termination.
The IRS, Treasury, and White House did not respond to requests for comment on the furlough plans. Earlier this year, the IRS implemented mass layoffs under the Department of Government Efficiency, reducing its workforce from around 100,000 in 2024 to approximately 75,000 currently.
