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KPMG article: Insights on IRS-wide furlough as a result of government shutdown

Practical insights from Doug O’Donnell on effectively navigating uncertainties in this environment

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october 10, 2025

The IRS on October 8, 2025, announced the commencement of an IRS-wide furlough for everyone except already-identified excepted and exempt employees. Read TaxNewsFlash

According to the updated FY2026 IRS Shutdown Contingency Plan, 39,870 employees (53.6%) of the total IRS employee population are designated as “exempt” and will be retained.

The IRS had previously announced it would continue normal operations for five days using funding provided under Pub. L. No. 117-169 (commonly called the “Inflation Reduction Act” (IRA)). Read TaxNewsFlash

Read a KPMG article* prepared by Doug O’Donnell, who formerly served as IRS Acting Commissioner and Deputy IRS Commissioner and who joined KPMG LLP in July 2025, providing practical insights on effectively navigating the uncertainties in this environment.

*This article originally appeared as a Bloomberg Tax Insight and is provided with permission. Published October 10, 2025. Copyright 2025 Bloomberg Industry Group 800-372-1033. For further use please visit https://www.bloombergindustry.com/copyright-and-usage-guidelines-copyright/

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