The Internal Revenue Service has decided to postpone the unpaid furlough day it had scheduled for August 30 after making progress on cutting costs at the agency.

“Today, I want to give you an important update as we continue to address our budget situation,” said an email Wednesday from IRS principal deputy commissioner Danny Werfel. “With your help, we have made substantial progress in cutting costs. I greatly appreciate everyone’s help in this critical effort. Our progress is such that we have decided to postpone the furlough day scheduled for Aug. 30. We still have more work to do on the budget and cost-savings, so we will reevaluate in early September and make a final determination as to whether we will need another furlough day in September. I encourage everyone to remain focused on the important work you are doing to be good stewards of taxpayer dollars so we can maintain the progress we have seen and avoid the lost productivity that occurs with any furlough day.”

Last month, the IRS announced that it had canceled another of the unpaid furlough days it had planned for July 22 in response to the budget sequester, after taking various budget-related steps (see IRS Cancels Next Employee Furlough Day).

Werfel pointed out that all IRS offices will now be open on Aug. 30. “We wanted to let you know as soon as possible so you have enough advance notice to make or adjust plans leading up to the Labor Day weekend," he added. "We know many employees may have conflicts that day, so liberal leave will be available. I will continue to keep you informed as the budget situation continues to develop. Thank you for your patience and continued support.”