IRS plans possible furloughs in case of a government shutdown

The Internal Revenue Service is developing a contingency plan that may result in service cutbacks in case of a government shutdown, according to the labor union representing IRS workers who face possible furloughs.

House Republicans have been unable to agree on advancing any appropriations bills this week or last week despite a looming deadline of Sept. 30, amid a rebellion by some members against House Speaker Kevin McCarthy, R-California. Ultimately, it’s expected that enough House Republicans will need to compromise with Democrats in the House and Senate to pass a spending bill, or at least a continuing resolution to push back the deadline. But it’s unclear whether that will happen before the end of the month. In the meantime, the IRS is preparing to update its existing contingency plan, according to the head of the National Treasury Employees Union.

“The IRS has yet to release its final plan, so we do not know the full scope of the impact of a government shutdown on IRS employees,” said NTEU national president Doreen Greenwald in a statement Friday. “NTEU became aware from our members that the IRS was developing a new contingency plan that includes furloughing some of its workforce. We alerted our members so they could prepare for a potential government shutdown during which they may not be paid.  Our country needs federal employees to remain on the job and federal employees deserve to be paid timely. With just over a week to go, federal employees are worried that their ability to serve the American people will be disrupted, along with their paychecks that help care for their families. Shutdowns have serious consequences for federal employees, federal agencies and the public they serve. To be clear, NTEU strongly believes that Congress needs to avoid a government shutdown.” 

An IRS spokesman declined to comment. The IRS may need to partially close some functions in case a shutdown occurs. The Federal News Network reported that the existing contingency plan envisioned the IRS being able to use some of the extra funding from the Inflation Reduction Act to continue operations, but the 2022 law put strict limits on how the funds were supposed to be spent. 

Greenwald talked to reporters during a news conference Monday about the possibility of a government shutdown. “An issue that’s on our members’ minds is the potential shutdown that could occur at the end of this month,” she said. “First of all, a shutdown should not be a political tactic. A shutdown is a failure of our elected leaders to do their jobs, and it is a threat to our members and to the American people. Our members’ work is crucial for promoting economic stability and ensuring public safety and upholding our nation’s reputation and standing in the world. Our members want our government to work effectively and efficiently, and to do so it must remain open so they can work and serve without having to suffer the stress of financial insecurity. Oftentimes people don’t understand what it means to go without a paycheck. Most federal employees live paycheck to paycheck.”