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IRS cancels one furlough day, cuts costs elsewhere

A woman walks out of the Internal Revenue Service building in New York in this May 13, 2013 photo. REUTERS/Shannon Stapleton
A woman walks out of the Internal Revenue Service building in New York in this May 13, 2013 photo. REUTERS/Shannon Stapleton

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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