When nearly half of the Internal Revenue Service’s workforce was told to go home this week, it set off a wave of confusion for employees and taxpayers alike. More than 35,000 workers were furloughed as the government shutdown stretched on, and the impact is already being felt. If you rely on the IRS for answers, refunds, or even basic processing, you should expect things to slow down.
Why is the IRS furloughing workers
The IRS had originally planned to keep its entire workforce active during the shutdown, thanks to funding from the Inflation Reduction Act. But that only lasted a few days. Once that window closed, the agency updated its contingency plan and announced that 34,400 of its 74,300 employees would be placed on furlough.
That means:
- Almost half of the agency’s staff are not working.
- Essential workers are still in place, but far fewer than normal.
- The agency has said these plans could change again depending on how long the shutdown drags on.
The timing could not be worse. The October 15 tax extension filing deadline is around the corner, and thousands of paper returns and payments are arriving daily with fewer people available to process them.
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How does this impact taxpayers
If you are waiting for a refund, trying to reach the IRS by phone, or need help with paperwork, you will likely face longer delays than usual. Union leaders are warning about dropped calls, unanswered questions, and backlogs that could pile up quickly.
Gibson Jones, president of the IRS union chapter in Memphis, told CNN that the “vast majority” of workers in his office were furloughed, leaving behind only “very limited skeleton crews.” He added, “We’re in a government shutdown over money, and the people who could be out there collecting more money for the federal government have been furloughed.”
Simply put, you may notice:
- Longer hold times when calling the IRS.
- Delayed processing for mailed tax returns or payments.
- Slower responses to non-urgent taxpayer questions.
- A backlog that could grow worse as the shutdown continues.
What services are still running
Even with so many employees sidelined, some IRS services are still considered essential. Those staying on the job include:
- Customer service representatives handling urgent tax return processing.
- Staff processing returns with payments.
- Some tax examiners and revenue agents working in small business divisions.
- Local taxpayer advocates providing limited support.
However, many services have stopped altogether. That includes responding to taxpayer questions outside of the main filing season and non-automated collection activities. In other words, unless it is considered critical, it is likely not happening right now.
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What workers are experiencing
For employees themselves, the situation has been messy. Many say they received mixed signals about whether they were furloughed or expected to work.
In Kansas City, union chapter president Shannon Ellis described “lots of confusion” as staff first received a recorded emergency message saying they were furloughed, only to be told later by managers to “ignore that message.” Hours into the day, some workers still did not know their official status.
In Austin, Maria Ramos said she drove an hour and a half to work, waited four hours in the office, and was then told to go home because she was furloughed. “At a time when we’re not going to be getting paid, people could’ve used that gas money,” Ramos told CNN.
Adding to the tension, some employees who were considered essential in past shutdowns — such as those who open and scan mailed tax returns — were furloughed this time. Others said they were told they could not take medical leave or vacation while considered “essential,” even for surgeries, which only added to the uncertainty.
What happens next
The IRS said that nearly 40,000 employees who remain on the job are being paid from resources other than annual appropriations. But the future remains unclear. The agency’s own plan says staffing levels could change again within days—or stay in place until April if the shutdown drags on.
For now, taxpayers should brace for delays, and employees will continue to wait for clarity. As union leaders across the country are saying, there is “no rhyme or reason” to who is being furloughed, and that lack of communication is creating frustration on all sides.
