IRS Limits Services During Government Shutdown: What U.S. Taxpayers Need to Know

 Summary for IRS services: Limitation

During the ongoing federal government shutdown, the IRS has limited several in-person and non-critical operations, while keeping essential automated systems active. That means taxpayers can still e-file, process some refunds, and make online payments — but many phone services, audits, and paper return operations are delayed.

Here’s everything U.S. taxpayers and businesses need to know about what’s running, what’s paused, and how to protect their refunds during the shutdown.

What the IRS Has Officially Announced

The Internal Revenue Service (IRS) confirmed that due to the lapse in federal appropriations, it is operating on a limited basis.
While many employees are on furlough, key automated systems remain operational to maintain the country’s critical financial functions.

In a statement, the IRS emphasized that “tax law remains in effect” — meaning filing deadlines, penalties, and interest continue unless specifically postponed by the agency.

IRS Services That Continue to Operate

Despite limited staffing, certain IRS operations are still running to ensure essential services continue for taxpayers:

E-filing and automated refunds
Electronic tax return filing remains active, and most error-free direct deposit refunds continue to be processed automatically.

Online payment and account tools
Self-service features on IRS.gov — like “Where’s My Refund,” “Get Transcript,” and online payment options — remain available.

Electronic payroll and business tax filings
Employers can still file electronically through approved IRS e-file providers.

Automated collection systems
IRS systems continue to process ongoing payments and some collection activities as required by law.

IRS Services That Are Currently Limited or Paused

The following services are affected during the government shutdown:

Live phone and in-person support
Most Taxpayer Assistance Centers (TACs) are closed, and phone support availability is severely limited.

Paper return and correspondence processing
Expect significant delays for paper tax returns, mailed notices, or other correspondence.

Audits and examinations
Non-critical audits and investigations have been paused, though essential enforcement actions may continue under specific legal authority.

Refund adjustments and paper amendments
Manual review processes (e.g., Form 1040X or refund claims) will not be processed until staffing resumes.

What Taxpayers Should Do During the Shutdown

Here’s how to minimize delays and avoid penalties during this period:

1. File electronically and choose direct deposit
   E-filing ensures the fastest possible processing. Avoid paper filings unless absolutely necessary.

2. Pay taxes on time
   Filing deadlines and late-payment penalties remain active. Use the IRS online payment portal or EFTPS to avoid interest.

3. Monitor IRS.gov for official updates
   The IRS newsroom and social media channels will post updates once the agency resumes normal operations.

4. Keep documentation for all filings and payments
   Retain receipts, confirmations, and e-file acknowledgments in case of disputes or audit resumption later.

 For Businesses and Tax Professionals

Businesses and accounting professionals should prepare for slower turnaround times on requests such as:

• Transcript requests for reconciliations

• Amended employment tax forms

• Payroll-related credits or adjustments

• Paper correspondence follow-ups

Intellgus Tip: Prepare for cash flow flexibility — refunds and credit reconciliations may take longer than usual. Automate payment systems and track all transactions digitally.

Why This Happens — Understanding IRS Shutdown Procedures

When Congress fails to pass a funding bill, federal agencies implement lapse-of-appropriations contingency plans.
Under the Treasury Department’s shutdown policy, only essential IRS services (such as electronic systems, data protection, and law enforcement) remain in operation.

During this 2025 shutdown, the IRS furloughed thousands of employees starting October 8, 2025, but continued to maintain automated e-filing and payment systems to support the country’s financial infrastructure.

What to Expect Next

Taxpayers should watch for the following updates:

• A potential continuing resolution or funding bill could restore IRS operations within days.

• The IRS may issue relief or deadline extensions for taxpayers impacted by delayed services.

• Updated guidance will appear on IRS.gov/newsroom once the agency resumes full functionality.

Key Takeaways (Action Checklist)

• File electronically (avoid paper returns)

• Pay any due taxes to prevent penalties

• Stay informed via IRS.gov newsroom updates

• Businesses: prepare for slower refund or credit cycles

• Keep digital proof of all submissions and payments