IRS Poised to Start Furloughs as Shutdown Persists: BGOV Tax

Oct. 6, 2025, 10:09 AM UTC

IRS Furlough Plan Looms

The IRS is on its fourth day operating under a contingency plan, as the federal government shutdown drags on.

While the IRS has been largely at full staff using funds from Democrats’ 2022 tax-and-climate law to prevent furloughs, the agency’s shutdown plan only covers the first five business days of a shutdown, which started Oct. 1.

Bloomberg Tax reported Friday that if the shutdown goes past Tuesday, the IRS would furlough about 35,000 of its 75,000 employees. Those working on filing season activities, implementing legislation, and IT modernization will remain working, according to a person ...

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