How to Navigate IRS Challenges as a Taxpayer During a Government Shutdown
- Timalyn S. Bowens
- Oct 8
- 5 min read
The United States government shut down on October 1st, 2025. This was due to Congress not being able to settle a budget dispute. This means that there are no funds to pay government employees, even though they still have to go to work. This has a direct impact on the Internal Revenue Service (IRS) and taxpayers.
The IRS operated at full capacity from October 1st to October 7th because of funds allocated to it from the Inflation Reduction Act. But on October 8th, we are expecting the IRS to furlough 35,000 employees. As a reminder, since January, the IRS has shrunk from 101,000 employees to ~71,000 under the department of government efficiency (DOGE) cuts. After this furlough, the IRS will only have right under 40,000 employees.
Essential employees for the IRS are those who:
process tax returns
issuing tax refunds
processing paper tax returns and payments
investigating cases involving tax evasion and other financial crimes
tax collection activities
audit functions and exams
IT staff
handle urgent taxpayer inquiries
So with such a reduced staff, how do you navigate the IRS with your tax issue(s)? What if you don't have issues, but you want to avoid issues? I'll share some things to stay on top of and what you can expect from the IRS.
Taxpayer Tips for dealing with the IRS during a Government Shutdown
1 - A government shutdown does not equal an IRS shutdown.
The IRS is still open, just at a very limited capacity. Most services are shut down. The government is still expecting you to tend to your taxpayer obligations. This includes, but is not limited to, filing and paying your taxes on time.
For individuals and corporations, that means filing your 2024 tax extension by the deadline on October 15th. Your quarterly estimated tax payments are yet due as well. If you did not file a tax extension, you need to get that filed as soon as possible.
2 - A government shutdown is not a get out of jail free card.
IRS employees involved with collection activities are essential. That means if you have a back tax balance you can't pay in full, you want to address that issue sooner rather than later. This will help you avoid a bank account levy or wage garnishment. The IRS can even garnish your retirement funds.
If you are currently in a payment arrangement with the IRS, continue making your payment. The automated collection system (ACS) handles IRS levies. Which means if you have defaulted, an automatic system is looking for an account match to levy. With there being fewer IRS employees at work, it can be more difficult to remove.
3 - Keep records of communication with the IRS.
You should keep records of communication with the IRS at all times, but especially now. Keep note of the agent you speak with on the phone. This includes their name and badge number. If you send anything by mail, be sure to send it by certified mail and keep your green receipt with the tracking number.
4 - Consider using a tax professional
Contrary to what Intuit told us a few years ago, not all people are tax people. Simple situations may become exacerbated by the shutdown. You may want to consider the guidance of a tax professional if you feel overwhelmed or lost.
When choosing where to get your information, consider the source. Below are some credible sources that you can follow to stay up to date with what is going on in the tax world.
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What to expect from the IRS during a Government Shutdown
1 - Taxpayer Assistance is Limited
The Taxpayer Advocate Service has limited personnel to assist with hardship cases. This will make it harder for taxpayers to DIY their own tax relief. You may want to consider working with a tax professional to guide you through the process. This could be a consultation for instruction, resources like this blog, or hiring them to represent you before the IRS.
2 - Prepare for Delays
With reduced personnel, the IRS will take longer to process tax returns, payment arrangements, etcetera. Be realistic with how long it will take for the IRS to process things on your account. This is going to include tax returns, payment arrangements, and offers in compromise.
The customer service lines will also have delays. If you have to make a call to the IRS, do your research so you understand what you need before making the call. That way, you can have everything you need the first time and won't have to call back.
If you have to call the IRS for help, block out more time to be able to get your situation taken care of. Typically, refunds take 2-3 weeks to process. Even those may take longer for you to receive now.
3 - Impact on the 2026 Tax Season
With a reduced force, it is easy for the IRS to fall behind. This time of year is critical for the next season. After the extension season, usually in November, the IRS shuts down the e-file system to prepare for the next tax season.
Depending on how long this government shutdown lasts, the IRS will have less time to focus on next season. Not only that, the IRS needs to make updates for the One Big Beautiful Bill Act. They will have to update forms to account for things such as the enhanced senior deduction, charitable contributions, no tax on tips, and no tax on overtime.
Nothing is official yet, although a former commissioner did allude to it, but the filing season may start a little bit later next year. To account for the updates made to the tax code, but now also taking this shutdown into consideration. This means the e-file system may not be ready to accept returns until later. This will also cause a delay in the processing of refunds.
In Summary
The government shutdown does not equal an IRS shutdown. But it will potentially impact all taxpayers. Whether you are in good standing or not, this could affect the IRS approval of your payment arrangement or the sending of your refund. You can prepare for these delays by setting realistic times for IRS communication and keeping great records.
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Timalyn S. Bowens EA is America's Favorite EA and Tax Expert who will work hard to find a customized legal solution for you! As an Enrolled Agent licensed through the Internal Revenue Service, Timalyn can fight the IRS for taxpayers in all 50 states. As the host of Tax Relief with Timalyn Bowens and a YouTube content creator, she empowers taxpayers to make educated decisions about their tax situation.
When you are facing questions regarding your personal or business taxes, working with a professional makes all the difference. At Bowens Tax Solutions, we serve our Louisville-area neighbors by providing the tax services and knowledge needed to succeed. We are here to assist you with your tax issues and preventative care. Visit our website at www.bowenstaxsolutions.com for more information.
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