A stunning development in the ongoing government shutdown has left IRS employees reeling. While the IRS initially furloughed nearly half its workforce, a new policy has emerged, threatening furloughs for those exempt from the shutdown if they take too much leave.
Here's where it gets controversial... The IRS is now saying that exempt employees who take more than eight hours of leave per pay period will be furloughed for the remainder of that period. And this is the part most people miss: these employees may or may not be called back to work for the next pay period.
IRS employees are in a state of confusion and distress. One employee shared their experience, saying, "We just furloughed dozens of employees who were previously told they were safe. Everything changed today, and I had to call them, hearing their tears and breakdown."
Another employee, who had received an exemption during the shutdown, was informed they would be furloughed due to taking more than eight hours of leave. Their exemption notice, however, stated that their work and pay would continue as usual.
The IRS's initial contingency plans did not account for an extended shutdown beyond October 7th. As a result, the agency is now deferring to the Office of Management and Budget, which has suggested that furloughed federal employees may not be guaranteed back pay.
But wait, there's more... Legislation signed by President Trump in 2019 guarantees back pay to furloughed employees once the shutdown ends. Yet, an exempt employee who was promised a return to work later this month has not received this update in writing, leaving them uncertain about their future.
Former IRS Commissioner John Koskinen expressed surprise at the furloughs, stating that "emergency" employees involved in protecting life or property, including federal tax revenues, should not be furloughed. Another former commissioner, Larry Gibbs, agreed, highlighting the risks these furloughs pose to the agency's preparations for next year's filing season.
The IRS's updated contingency plans aim to keep 53% of its employees working as the shutdown enters its second week. However, the agency's preparations for major tax code changes as part of the "Big Beautiful Bill" signed into law in July are being disrupted.
This situation raises many questions and concerns. What are your thoughts on the IRS's handling of this matter? Do you think the furloughs are justified, or is there a better way to navigate this challenging situation? Feel free to share your opinions and insights in the comments below!
