IRS Faces Workforce Reduction Amid Government Shutdown

The IRS will furlough nearly half of its workforce due to the ongoing government shutdown as most operations close. This follows President Trump's and Congress's failure to agree on federal funding, with 750,000 federal workers nationwide facing potential furlough or termination.

The IRS has announced that nearly half of its workforce will be furloughed, aligning with the continuous government shutdown, as per the updated contingency plan released on Wednesday. Most IRS services are currently suspended, as detailed by a separate notice to employees.

The shutdown persists following a stalemate between President Donald Trump and Congress regarding federal funding, now entering its second week with no resolution in sight.

The agency's initial Lapse in Appropriations Contingency Plan allowed operation continuity for the first five business days using funds from the Democrats' Inflation Reduction Act. However, this allowance has diminished, resulting in only 53.6% of the workforce remaining on duty.

(With inputs from agencies.)