IRS Furloughs Take Effect Amid Extended Government Shutdown, Back Pay Uncertainties Emerge

The Internal Revenue Service (IRS) has initiated widespread furloughs, effective October 8, 2025, as a government shutdown extends into its second week. Most IRS operations are now closed, with mass furlough notices distributed to employees.

While 53% of IRS staff, primarily those in public-facing taxpayer services, will remain on duty, the majority are now in a non-pay, non-duty status. This move comes after the agency’s initial contingency plans, which kept all employees working for the first five business days, did not account for a funding lapse beyond October 7.

A significant point of contention is the guarantee of back pay for furloughed federal employees. Although the Government Employee Fair Treatment Act of 2019 typically ensures compensation once a shutdown ends, the Office of Management and Budget (OMB) recently circulated a draft legal opinion suggesting that future back pay may require explicit congressional approval. This stance has drawn bipartisan pushback, with House Speaker Mike Johnson affirming his belief that federal employees should be paid, citing tradition and statutory law.

The National Treasury Employees Union warns that taxpayers should brace for increased wait times, service backlogs, and delays in implementing new tax laws. With the October 15 deadline for extended tax returns fast approaching, the shutdown’s impact on critical taxpayer services is a growing concern.

The IRS had previously explored using Inflation Reduction Act funds to maintain operations during a shutdown but ultimately determined there were limitations on such use, leading to the decision to furlough a substantial portion of its workforce.

阅读中文版 (Read Chinese Version)

Disclaimer: This content is aggregated from public sources online. Please verify information independently. If you believe your rights have been infringed, contact us for removal.