IRS - IRS Faces Massive Furloughs Threatening Crucial Tax Services Amid Possible Government Shutdown | Benzinga
The Internal Revenue Service (IRS) is girding up for massive furloughs that could hamper important taxpayer services, as the threat of a government shutdown looms large.
What Happened: The IRS plans to furlough a sweeping majority of its workforce, around 60,000 employees, if the government shuts down on Sunday, as reported by The Washington Post. Despite the $80 billion boost from the Inflation Reduction Act, recent federal guidelines have clarified that these funds cannot be used to cover salaries during a shutdown.
Such a shutdown could impede key services, like processing of late tax filings. Charles Rettig, former IRS commissioner, cautioned that most IRS employees would be unreachable during the shutdown, and the potential impact on recruitment efforts should not be underestimated.
Reacting to this, the American Institute of CPAs has urged the IRS to reconsider its furlough decision, warning of potential delays in the processing of late returns for the 2022 tax season.
Although the potential shutdown looms, long-term modernization projects funded by the Inflation Reduction Act may proceed. Around 30,000 employees can continue working on these ...