With changes in budgetary restrictions, the IRS will scrap its previously scheduled furlough day this Friday, August 30. The agency has continued to cut costs in other areas within the agency and this has allowed the agency to cancel the two most recent furlough days.

Due to funding challenges, the agency has already closed it’s doors to the public on three occasions this spring and summer. The IRS implemented furlough days, unpaid days for all IRS employees, as a result of budget concerns, including the sequester.

“They were controversial since on those days, the IRS shut down completely leaving taxpayers and practitioners without access to IRS resources, including the Taxpayer Advocate Service and taxpayer assistance centers. Offices were closed, returns were not processed and refunds were not issued. The temporary closures, together with staffing shortages, contributed to long hold times and delays in responding to written correspondences.”

Daniel Werfel, the acting Commissioner of the IRS, previously announced that “bonuses for managers would be cut and bonuses for senior executives were being examined but he could not commit to withdrawing bonuses for union employees which had been characterized as a legal obligation under a collective bargaining agreement.”

The Obama administration had instructed agencies to cancel discretionary bonuses because of automatic spending cuts; nonetheless, it still took the IRS three furlough days to get its act together.

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