The federal government shutdown began on October 1, 2025, after lawmakers failed to reach an agreement to extend government funding. Because of this, the Internal Revenue Service has furloughed approximately 35,000 employees – nearly half of its workforce. The furloughs primarily affect enforcement personnel, including Revenue Officers and examiners, while customer service and return processing staff are deemed essential and will continue working.
The IRS kept all employees on duty for the first week of the shutdown by drawing on Inflation Reduction Act (IRA) funds, which allowed full operations through the initial days of the shutdown. Those reserves, however, ran out at midnight on Tuesday, October 7. At that point, the agency’s shutdown contingency plan took effect, requiring the furlough of non-essential personnel and limiting operations to critical functions needed to sustain basic tax administration and taxpayer assistance.
The funding impasse in Congress shows no clear signs of resolution. The White House and the Treasury Department have warned that an extended lapse could hinder the government’s ability to collect revenue and maintain essential administrative operations. With no timetable yet for a funding accord, it remains uncertain how long this partial shutdown will last or when the IRS will be able to resume full operations.
Taxpayers are encouraged to contact their local Withum tax professional with any questions about what the furlough means, particularly with respect to pending examinations, collection actions, or other ongoing IRS matters that may be delayed or temporarily suspended during the shutdown period.
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