The Trump administration said it will waive certain IRS penalties and interest for Department of Homeland Security (DHS) employees who are working without pay during the partial government shutdown, aiming to ease tax-related costs as the shutdown reached day 46.
- Who’s covered: DHS employees affected by the lapse in appropriations, including those required to work as “excepted” personnel without pay, according to Fox News.
- What relief is offered: The administration will waive certain IRS penalties and interest tied to unpaid federal tax liabilities that could arise because employees are missing paychecks during the shutdown, Fox News reported.
- Why it matters: The move is intended to reduce what the administration described as an “unfair burden” on DHS workers who remain on the job while pay is delayed.
- Timing: The announcement came as the shutdown entered day 46, with many DHS employees still reporting for duty without receiving regular pay.
- Agencies involved: The action centers on DHS employees and the Internal Revenue Service (IRS), as reported by Fox News.
- Scope: Fox News characterized the step as targeted relief tied to shutdown-related pay disruptions, focused on penalties and interest rather than broader tax forgiveness.
Brief context
The partial shutdown left several federal agencies without full-year appropriations, forcing some employees to be furloughed while others—classified as “excepted”—continued working to protect life and property. DHS includes frontline components such as the Transportation Security Administration and border and immigration enforcement agencies, where large numbers of employees may be required to work during funding gaps.
For affected workers, missed paychecks can create cascading financial problems, including difficulty paying bills on time and meeting tax obligations. The administration’s announcement is aimed at preventing additional costs—specifically IRS penalties and interest—that could accrue when employees cannot pay taxes on time due to delayed wages.
Employees looking for broader shutdown-related guidance on pay and benefits impacts can reference federal pay and benefits resources, including calculators and guides at FedInfo (fedinfo.org), particularly if they need to estimate cash-flow impacts while awaiting back pay.
Source: Fox News (Politics), “Trump admin makes major move to relieve ‘unfair burden’ on DHS workers as shutdown drags on” (https://www.foxnews.com/politics/trump-admin-makes-major-move-relieve-unfair-burden-dhs-workers-shutdown-drags-on)