The recent government shutdown has left many taxpayers wondering what it means for their taxes, filings, and payments. With so many federal agencies scaling back operations, it’s natural to assume the IRS might hit pause on deadlines or enforcement. Unfortunately, that’s not the case.
Even as the shutdown limits staffing and slows certain services, most IRS deadlines remain firmly in place. Taxpayers are still required to file and pay on time, and the agency continues to process electronic submissions and payments. However, many support functions, such as live assistance and paper processing, are being delayed.
In this article, we’ll break down what’s actually changing at the IRS during the shutdown, what’s staying the same, and how taxpayers can protect themselves from missed deadlines or unnecessary penalties.
What’s Happening: The Shutdown and the IRS
The current government shutdown stems from Congress’s failure to pass new spending legislation, forcing many federal agencies to suspend or limit operations. While this type of event isn’t new, the IRS has experienced several shutdowns in the past, it always raises the same question:
What happens to tax administration when the government stops?
In early October, the IRS announced that regular tax deadlines remain in effect, even as the agency scales back its workforce. According to the agency’s contingency plan, nearly half of IRS employees, roughly 34,000 workers, have been furloughed until funding is restored. That means significantly fewer people are available to answer phones, process paper filings, or provide in-person assistance.
Certain services have been paused altogether. Taxpayer Assistance Centers are closed, phone support is extremely limited, and paper correspondence is experiencing major delays. Electronic systems, however, such as e-filing, online payments, and direct deposit processing, remain operational.
In short, the IRS is open for filing but closed for help. Taxpayers can still submit returns and make payments, but they should expect slower response times and reduced access to support while the shutdown continues.
What Government Shutdown Means for Taxpayers: Deadlines, Payments, and Filing
Even with the shutdown in effect, the IRS has made one thing clear: tax deadlines still apply. Whether you are an individual filer, small business owner, or employer you are still required to file your returns and make payments on time.
Electronic filing and payment systems remain fully operational, and taxpayers who file electronically with direct deposit can expect the most reliable processing times. However, those submitting paper returns should anticipate significant delays. With limited staffing, the IRS will not be able to process paper filings or mailed payments as quickly as usual.
Refunds will continue to be issued, but only for returns that are error-free and submitted electronically. Paper-filed returns, amended returns, and correspondence requiring manual review will likely remain in a backlog until normal operations resume.
It’s also important to note that the shutdown does not extend filing deadlines. For example, taxpayers who received an extension to file their 2024 returns by October 15 must still meet that deadline. The same goes for businesses with payroll tax deposits, estimated payments, and corporate filings, all of which remain due as scheduled.
In short, the IRS may be short-staffed, but your tax responsibilities haven’t changed. Filing on time, paying electronically, and keeping records of submission are still the best ways to avoid penalties or interest during the shutdown.
What It Doesn’t Mean (and What Is Not Automatically Changed)
The government shutdown has created plenty of confusion about what’s changing at the IRS, and what isn’t. While operations are limited, taxpayers should know that their responsibilities remain largely the same. The shutdown may slow service and response times, but it doesn’t erase deadlines or automatically suspend enforcement.
Many people assume that because the IRS is operating with limited staff, enforcement will pause. In reality, that’s only partially true. Certain enforcement actions, such as in-person audits or field visits, are on hold. However, automated collection systems remain active, which means notices and balance due letters can still be generated.
If you already owe back taxes, have unfiled returns, or are in an installment agreement, it’s important to stay current. Payments toward existing agreements should continue as scheduled to avoid defaulting. Taxpayers waiting on penalty abatement requests, appeals, or other correspondence should expect significant delays in processing, but those requests will not be automatically approved or paused.
The same applies to new filings for relief programs, such as installment agreements or offers in compromise. The IRS will accept submissions, but reviews and decisions may not occur until full operations resume. In other words, taxpayers can still take proactive steps to resolve their tax issues, even if it takes longer to receive confirmation or approval.
The bottom line: the shutdown limits communication with the IRS, but it doesn’t suspend your obligations or prevent you from seeking tax relief. Staying proactive and keeping documentation of all filings, payments, and correspondence is the best way to stay protected during this period of uncertainty.
Practical Tips for Taxpayers
With the IRS operating at reduced capacity, it’s essential to stay organized and proactive. The following steps can help you avoid unnecessary penalties or complications during the shutdown:
1.) File Electronically
Electronic submissions are processed automatically, which means they’re far less likely to get caught in the backlog of paper filings. Use direct deposit for refunds and electronic payment options for balances due to ensure everything is logged and traceable.
2.) Don’t Wait to File or Pay
Deadlines remain in effect even while the IRS is short-staffed. Submitting your return or payment early gives you time to correct any issues and helps avoid system overload close to due dates.
3.) Keep Detailed Records
Save electronic confirmations, payment receipts, and copies of mailed documents. If you send anything by mail, use certified mail or another service that provides proof of delivery. These records can protect you from penalties if your return or payment isn’t processed right away.
4.) Seek Professional Assistance When Needed
If you already owe back taxes, have unfiled returns, or are waiting on a response from the IRS, consider working with a tax relief professional. An experienced expert can help you stay compliant, manage existing agreements, and prepare filings while the IRS is limited in capacity.
Even in a shutdown, being proactive and maintaining good documentation can make a significant difference. Andrin Tax Relief continues to assist clients throughout this period, helping taxpayers stay on track and avoid costly mistakes until the IRS resumes full operations.
What This Means for Businesses
For small business owners, the shutdown brings additional uncertainty, especially for those responsible for payroll taxes, estimated payments, and other recurring filings. While many government offices are closed or limited, business tax deadlines have not changed.
Employers must continue to deposit payroll taxes on time and file employment tax returns as scheduled. Late or missed payments can still result in penalties and interest, even if IRS staff are unavailable to respond or provide assistance. Electronic filing and payment systems remain the most reliable way to stay compliant and maintain accurate records of submission.
Businesses waiting on the IRS for pending matters, such as Employee Retention Credit claims, refund requests, or correspondence on audits or notices, should anticipate significant delays. However, those delays do not affect filing requirements or obligations to make timely deposits.
For small business owners who already have tax debt, the best approach is to stay current on new filings and payments while working with a professional to manage outstanding balances. Continuing to make payments, even partial ones, shows good faith and can help prevent enforcement action once the IRS resumes normal operations.
Looking Ahead: The Filing Season and Beyond
As the shutdown continues, taxpayers should expect its effects to carry into the next filing season. Processing delays, staffing shortages, and backlogs may take months to resolve, which could impact how quickly returns and refunds are handled once operations resume.
The most effective way to prepare is to stay organized now. File electronically, keep documentation of all submissions and payments, and continue to address any outstanding tax issues before the new year. For those who already owe back taxes or have unfiled returns, taking action early will make it easier to stay compliant and avoid further complications later.
While the IRS may be harder to reach during the shutdown, Andrin Tax Relief remains ready to help. Our team continues to assist clients in resolving tax debt, setting up payment plans, and managing communications with the IRS once full operations return.
If you’re unsure how the shutdown may affect your situation, or you need help staying on track with your taxes, contact Andrin Tax Relief today. Our specialists can guide you through available relief options, help you avoid penalties, and create a plan to keep your finances protected through this uncertain period and beyond.
