IRS workforce slashed in half as government shutdown showdown stretches into second week

Nearly half of the IRS workforce — nearly 34,000 employees — faces furloughs as the government shutdown enters its second week, with the agency rolling out a contingency plan to keep key tax enforcement, data security, and filing-season operations running despite the lapse in congressional funding.

In a letter to staff Wednesday, the agency said most operations would shut down. The contingency plan, which takes effect Wednesday and runs through April 30, 2026, details how the IRS will operate without new congressional funding.

As of July 24, 2025, the IRS employed 74,299 people. During the shutdown, only 39,870 — about 54% — will stay on duty, though it’s unclear which positions will be retained.

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