IRS Furloughs Half Its Workforce Amid Government Shutdown Chaos

The Internal Revenue Service (IRS) has furloughed nearly 34,400 of its 74,300 employees amid the ongoing federal government shutdown.

The agency had initially planned to keep all staff working under funds from the 2022 Inflation Reduction Act (IRA) but reversed course as the shutdown has dragged on.

The furloughs have caused widespread confusion, with workers receiving conflicting instructions about their employment status.

🚨 BREAKING: The IRS is now furloughing nearly HALF of its workforce due to the Democrats' government shutdown.

"Most IRS operations are closed."

So Chuck Schumer damages the Democrat brand nationwide AND the IRS comes to a screeching halt.

MAGA isn't complaining about this… pic.twitter.com/A619moJPfC

— Eric Daugherty (@EricLDaugh) October 8, 2025

Union leaders say critical paper-processing and tax collection roles have been cut, potentially delaying tax filings and refunds ahead of the October 15 extension deadline.

The IRS says remaining employees will be paid from non-appropriated resources, though unions dispute the funding’s legality. GOP lawmakers have previously pushed to slash IRA funding for the agency.

Forbes Daily: Government Shutdown Hits IRS Workershttps://t.co/RcD9zBpdS7 pic.twitter.com/6QKP3MRULR

— Forbes (@Forbes) October 9, 2025

As operations stall, taxpayer services and collections are among the key functions halted, raising concerns of revenue loss during an already fragile fiscal standoff.

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