US government shutdown forces IRS to furlough 34,000 employees

Business Oct 09, 2025

The IRS just furloughed about 34,000 employees—almost half its team—because of the ongoing government shutdown in October 2025.
Only essential staff are still on the job, while the rest have been told to wrap up their work and go on unpaid leave until things reopen.

Unpaid leave for non-essential workers

With so many people out, expect delays for things like tax return processing and refunds—especially if the shutdown drags on.
This affects millions of taxpayers and adds stress for furloughed workers, though some might qualify for unemployment depending on state rules.
The situation highlights how funding gaps can disrupt basic government services that everyone relies on.