IRS Cancels Furlough Day, Makes Cuts Elsewhere

WASHINGTON, July 16 (Reuters) - The U.S. 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)