IRS Delays Furlough Day for Employees After Cutting Costs

The U.S. Internal Revenue Service announced that it would delay a furlough day for employees scheduled for Aug. 30, citing “substantial progress in cutting costs.”

In an e-mail sent today to IRS employees, acting leader Danny Werfel said officials would decide next month whether the tax agency needs to reschedule the furlough day then.

“Our progress is such that we have decided to postpone the furlough day scheduled for Aug. 30,” Werfel said in the e-mail. “We still have more work to do on the budget and cost savings, so we will re-evaluate in early September and make a final determination as to whether we will need another furlough day in September.”

The IRS is one of a number of government entities furloughing employees to absorb automatic spending cuts, known as sequestration, that began March 1. The agency was closed for three days between May 24 and July 5.

Defense Secretary Chuck Hagel announced yesterday that the Pentagon was reducing to six days from 11 the furlough days that 85 percent of its civilian employees must take this fiscal year because of the automatic cuts.

The IRS previously canceled a furlough day scheduled for July 22.

To contact the reporter on this story: Kathleen Hunter in Washington at khunter9@bloomberg.net

To contact the editor responsible for this story: Jodi Schneider at jschneider50@bloomberg.net

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