IRS furloughs 46% of workforce amid government shutdown – taxpayer delays loom
By willowt // 2025-10-10
Copy
 
  • IRS furloughs nearly half its staff (46%) as the government shutdown enters its second week.
  • Taxpayers face delays, backlogs and extended wait times ahead of October 15 extension deadline.
  • No guaranteed back pay for furloughed workers despite past precedents.
  • IRS operations scaled back after Inflation Reduction Act funds expire.
  • Political stalemate continues with no resolution in sight.
The Internal Revenue Service (IRS) will furlough nearly half of its workforce this week as the federal government shutdown enters its second week, leaving taxpayers bracing for delays and disruptions ahead of a critical tax deadline. The furloughs — impacting 46 percent of IRS employees — come after Congress and the Trump administration failed to reach a funding agreement, paralyzing federal operations and raising concerns over backlogs in tax processing and taxpayer assistance. The IRS had initially relied on Inflation Reduction Act funds to maintain operations, but those reserves are now exhausted. Only 53.6 percent of employees — roughly 39,870 workers — will remain on duty. The agency has not specified which divisions will be most affected, but experts warn that customer service, audits and enforcement efforts will likely suffer.

Taxpayers face mounting frustrations

With the October 15 deadline looming for taxpayers who filed extensions, the IRS furloughs threaten to exacerbate existing delays. While e-filing systems remain operational, paper returns and taxpayer inquiries will face significant slowdowns. The National Treasury Employees Union (NTEU) warned that the shutdown will deepen backlogs, compounding frustrations for millions awaiting refunds or assistance. Historically, IRS furloughs during government shutdowns have led to prolonged processing delays. In 2019, a 35-day shutdown left millions of tax filings unprocessed, costing the government billions in delayed revenue. This time, with the IRS already stretched thin after mass layoffs in 2024, the disruption could be even worse.

Back pay uncertainty adds to worker anxiety

While IRS leadership assured employees they will receive back pay once the shutdown ends, the Trump administration has sent mixed signals. A White House memo earlier this week suggested furloughed workers may not be compensated, despite the Government Employee Fair Treatment Act of 2019, which mandates back pay for federal workers affected by shutdowns. The uncertainty has drawn sharp criticism from labor unions. The American Federation of Government Employees (AFGE) called the administration’s stance "cruel and illegal," arguing that federal employees—many living paycheck to paycheck—should not bear the brunt of political gridlock.

Political standoff with no end in sight

The shutdown stems from a deadlock between congressional Democrats and the Trump administration over federal spending priorities. House Speaker Mike Johnson has blamed Democrats for refusing to negotiate, while Senate leaders have failed to advance competing funding proposals. President Trump has previously suggested firing non-essential federal workers rather than furloughing them, raising concerns about long-term workforce reductions. Earlier this year, his administration oversaw mass layoffs at the IRS as part of broader efficiency reforms.

What comes next?

With no resolution in sight, taxpayers and federal employees alike are bracing for prolonged disruptions. The IRS has advised filers to use online services where possible but warns that paper returns and complex cases will face indefinite delays. Meanwhile, furloughed workers remain in limbo—unable to work, unpaid and uncertain if they will ever recoup lost wages. As the political blame game continues, one thing is clear: The longer the shutdown persists, the deeper the damage to government services and public trust. For now, taxpayers must navigate a hobbled IRS while Washington remains at an impasse. Final thought: The IRS furloughs underscore a recurring crisis—government dysfunction with real consequences for taxpayers and workers. Until leaders find common ground, the shutdown’s ripple effects will only grow. Sources for this article include: TheNationalPulse.com APNews.com Newsweek.com
Copy