The updates affect more than 60 tax provisions and are expected to apply to virtually all returns filed in 2027 for the 2026 tax year.

Agency spokespeople blamed “the Democrat-led government shutdown” for the RIFs, a week after President Trump said he and OMB’s Russ Vought would target “Democrat Agencies.”

While IRS is threatening furloughed employees with making them go without back pay, it has told exempted employees—those who continue to work because their salaries are paid through means other than annual appropriations—that they will receive their paychecks on time, according to messages reviewed by Government Executive.

Missing IRS deadlines can carry financial consequences. Failure to file and pay a tax return on time can result in a penalty of 5 percent of taxes owed for each month or partial month the return is late.

The IRS will furlough just under half of its staff and pause most of the agency’s taxpayer services as gridlock in Congress pushes the government shutdown into its second week.

Priscilla Presley allegedly hid a multi-million dollar jewelry collection worth "upwards of $25 million" from the Internal Revenue Service (IRS), her former business partners Brigitte Kruse and Kevin Fialko claim in a lawsuit.

Elizabeth McPeak, the first vice president of the National Treasury Employees Union Chapter 34, says the situation is hurting the rank and file as well as American taxpayers. "There's nobody there to help you right now if you have to go to a walk-in office," McPeak said. "We are asking Congress to do its job so we can do our job," McPeak added.

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