July 16, 2013 / 10:14 PM / 4 years ago

IRS cancels one furlough day, cuts costs elsewhere

WASHINGTON (Reuters) - The Internal Revenue Service said it was cancelling an agency shutdown that had been scheduled for Monday and required by federal budget cuts.

Internal cost-cutting efforts offset the need for IRS employees to take a mandatory furlough day on Monday, the IRS said in a statement on Tuesday.

In April, the IRS said its 90,000 employees would need to take five furlough days this year as part of across-the-board “sequester” budget cuts. The IRS has closed call centers and other taxpayer services on furlough days.

The sequester went into force on March 1 after President Barack Obama and Congress failed to agree to a deficit-cutting plan, requiring government agencies to cut spending by $85 billion for the rest of the fiscal year.

Reporting By Patrick Temple-West; Editing by Stacey Joyce

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