FAQ: US Government Shutdown and Taxes

Last Updated: October 8, 2025

The IRS has just announced major changes as the government shutdown stretches into its second week. Nearly half of all IRS employees (about 34,000 workers) are being furloughed, marking the first significant reduction in operations since the shutdown began. With call centers, IT staff, and many headquarters employees sent home, taxpayers and firms should expect longer wait times, slower refund processing, and potential backlogs as the IRS scales back to essential services only.

Despite these cuts, core digital tools like e-filing, Direct Pay, and “Where’s My Refund?” remain online, so electronic filing and payment systems continue to function normally.

Government Shutdown Frequently Asked Questions

Are there any US government shutdown updates?

Yes. As of October 8, 2025, the IRS has announced that it is furloughing nearly half of its workforce due to the ongoing federal government shutdown.

According to the agency:

• About 34,000 IRS employees have been furloughed, representing roughly 46% of the workforce.
• Another 39,870 employees (53.6%) will remain on the job, focusing on critical operations.
• Call center employees, IT workers, and most headquarters staff are being sent home.

This shift marks a major change from last week’s contingency plan, when the IRS said it would stay fully operational through October 7 using temporary funds from the Inflation Reduction Act.

What this means for taxpayers and firms:

• Operations will be significantly reduced. Expect slower processing, limited communications, and longer response times.
• Phone support and walk-in centers may have limited or no availability.
• Digital tools remain online: e-filing systems, Direct Pay, “Where’s My Refund?”, and online payment portals are still functional.
• Refunds and paper correspondence may face delays as staffing shortages increase.

Doreen Greenwald, president of the National Treasury Employees Union, warned that taxpayers “should expect increased wait times, backlogs, and delays implementing tax law changes as the shutdown continues.”

I filed for a tax extension. Should I be worried?

If you filed for an October 15 extension, you should act as soon as possible.

• File as soon as possible to get your return in the system early
• Even if return processing slows later, payments made through Remitian will post on time and protect you from penalties.
• For clients expecting refunds, be patient—refunds might take longer if IRS staffing decreases.

Even if IRS staffing slows refund processing, your payment will still be recorded on time, keeping you compliant.

Example:
A taxpayer files electronically through their CPA on October 8. The return is accepted automatically, but refund issuance might wait until full staffing resumes. However, their payment posts immediately through Remitian, so they remain fully compliant.

What happens to the IRS during a government shutdown?

Answer: In a federal government shutdown, many “non-essential” agencies scale back operations.  In past shutdowns, core IRS functions have continued at some level. In fact, for the 2025 shutdown, the IRS planned to stay largely operational by using special funding from the Inflation Reduction Act[2]. This means that initially:

• IRS employees will still be working, and key services (processing tax returns, issuing refunds, etc.) continued as normal [3].
• Essential online tools like e-filing systems, “Where’s My Refund?”, and payment platforms remain up and running .
• Critical taxpayer services are expected to be maintained, at least for a short shutdown period[4]. Contact Remitian at support@remitian.com for more info and how we can help you resolve your tax concern.

However, as of October 8 the IRS announced it is shifting from full to partial operations. This means:

• Around half of all IRS employees are furloughed.
• Core services like electronic tax payment systems, “Where’s My Refund?”, and e-filing remain online.
• Customer service, IT maintenance, and many administrative functions are now paused.
• The IRS is prioritizing work tied to legally required activities (like enforcing tax laws, protecting revenue, and safeguarding systems).

Example: During the 2018–2019 shutdown (the longest in history), the IRS initially operated with a skeleton crew. Phone assistance was very limited and paper return processing slowed down. The IRS is in a similar situation, functional but slowed.

Do I still have to file and pay my taxes on time during a shutdown?

Answer: Yes – absolutely. A government shutdown does not change tax filing deadlines or payment due dates[5]. At Remitian, we ensure that even if there is a slowness to IRS processing of checks, we can automatically process your tax payment in real time. There are no automatic extensions for tax filings or payments just because the government is closed. You are still legally required to file your tax returns on time (or by the extended due date if you already filed an extension) and pay any taxes due on schedule.

• Tax Deadlines Stay the Same: April 15 is still the main tax filing deadline (Oct 15 if you filed an extension), and quarterly estimated tax due dates remain unchanged[6]. The shutdown doesn’t push these dates back.
• Payments Are Still Due: If you owe taxes, you must still send your payment by the deadline. The IRS will still accept electronic payments (and checks, if mailed) during a shutdown. Interest and penalties will accrue on late payments as normal, so don’t delay payment thinking the IRS isn’t working.
• No “Free Pass”: It might feel like everything is on pause, but tax obligations continue. Failing to file or pay on time can still trigger penalties, even if IRS staffing is limited.

Bottom line: Continue to file returns, pay taxes, and respond to any IRS notices on time, just as you normally would. The law hasn’t changed – only the government’s operating status has. In fact, the IRS has explicitly signaled that all tax enforcement activities (like audits and collections) will continue uninterrupted during the early phase of a shutdown[7], so you should not ignore your tax duties.

Will tax refunds be delayed if the government is shut down?

Answer: It depends on how long the shutdown lasts, but likely yes. Since the reduction of staffing, refund processing could slow down – especially for paper-filed returns[8][9].

Here’s what to expect:

• Electronic Returns: If you e-file and choose direct deposit, the IRS can process your return largely automatically. You’re likely to get your refund on the normal timeline (often within 2-3 weeks). In 2025, the IRS planned to keep issuing refunds even during the funding lapse[3]. So e-filers should see minimal impact.
• Paper Returns: Mailed paper returns require human processing. During a shutdown, paper processing is often delayed if staffing is cut[8]. This means paper-filed refunds (and paper checks) could take longer than usual. It’s not uncommon for these to be backlogged until after full operations resume.
• Amended Returns & Specialty Refunds: Similarly, if you’re waiting on an amended return refund or certain credits, those might be slower in a shutdown scenario due to reduced personnel.

Tip: To get your refund fastest, file electronically and opt for direct deposit. That way, even if some IRS offices are short-staffed, the automated systems can handle your return. For example, during previous shutdowns, people who e-filed early saw their refunds processed normally, while those who mailed paper forms experienced weeks of delay.

If you’ve already filed and are waiting on a refund, you can continue to check the “Where’s My Refund?” tool online. It will update status as your return is processed. Patience is key – if the refund is delayed, know that it will be issued once the IRS catches up. And remember, no news doesn’t mean something’s wrong with your return; it might just be the slowdown effect of the shutdown.

Can I still contact the IRS for help or questions during a shutdown?

Answer: Yes – for now. The IRS has kept its customer service operations running during the 2025 shutdown using its special funds, meaning phone lines and support services remain available[4]. Here’s what to know:

• IRS Hotlines: Many call center employees were said to be furloughed on October 8th. If you call the main IRS taxpayer help line (800-829-1040), expect long waits and limited assistance available.
• IRS Offices:  If you have an appointment or need in-person help, confirm the office status (you can call ahead). These centers might close or offer limited services.
• Online Services: IRS online self-help tools (like IRS.gov FAQs, account transcripts, payment portals, etc.) are unaffected by the shutdown. You can and should use these digital resources to get information or perform tasks (e.g. checking your account balance, setting up a payment plan).
• Remitian.com: With our secure platform to the IRS payment portal we are here to process your US Federal tax payments as well as state payments. Contact us at support@remitian.com to get started today.

If you can’t get through: If you do happen to call and find no one available (which could happen if circumstances change during a very long shutdown), consider waiting a day or two and trying again. Many common questions can be answered via the IRS.gov website, which remains up. Or call Remitian at 1-877-8REMIT8. We have a team of tax professionals who can help to answer your questions

How will IRS audits, collections, or appeals be affected by a shutdown?

Answer: They will likely continue, at least initially. In prior shutdowns, the IRS paused many enforcement activities (like starting new audits or pursuing collections) because staff were furloughed. But this time is different: the IRS has indicated that audits, collection actions, and appeals will proceed as scheduled despite the government shutdown[7].

What this means for you or your firm:

• Ongoing Audits: If you or a client are in the middle of an audit, do not assume it’s on hold. Deadlines to respond to document requests or submit information still apply[7]. The examining agents are expected to keep working. If anything, reach out to the auditor to confirm any meeting times or due dates. Unless you hear otherwise, prepare for your audit meetings or phone conferences as planned.
• Collections & Notices: The IRS can continue to issue automated notices for taxes owed, and revenue officers can keep working collection cases. If you’re on a payment plan (Installment Agreement), continue making your payments on time – those agreements remain in force. Automated systems may still generate bills or notices of levy for delinquent taxes (though new levies or liens were sometimes put on hold in past shutdowns). It’s safest to assume enforcement is active, so don’t ignore any collection letter thinking “the IRS isn’t working.”
• Appeals: If you have an appeal pending (protesting an IRS finding or penalty), the IRS Office of Appeals also plans to stay open. You should meet any deadlines for submitting supporting information. If an Appeals Officer scheduled a conference with you, expect it to go forward. Again, check in with them if needed, but plan as if it’s business-as-usual.

Case Scenario: XYZ Corp was undergoing an IRS audit when the government shut down. In 2019, XYZ might have seen their audit halted and rescheduled weeks later. In 2025, however, the auditor emailed them that she’s still working on the case. XYZ provided all requested documents by the deadline. The audit continued without delay, and XYZ’s proactive response meant the shutdown had virtually no impact on their case. Lesson: Keep communicating and meet your obligations; assume the IRS is operating unless you hear otherwise.

If a shutdown becomes very prolonged (several weeks or more), there is a chance that eventually some of these activities could slow or pause. The IRS might reprioritize if funding becomes an issue. In that scenario, you might see audit appointments postponed or new enforcement actions temporarily suspended. Should that happen, the IRS will likely announce it and provide guidance (for example, in the 2019 shutdown, they issued FAQs about extensions for deadlines that fell during the closure). Always stay tuned to IRS news for any changes. But as of now, plan for continuity – better to stay on top of things than to be caught off-guard.

Will a shutdown give me extra time to file or pay (e.g. an extension)?

Answer: No, a shutdown doesn’t grant extra time by default. There is no special extension of tax deadlines purely due to a government shutdown[5]. The normal rules for filing extensions apply (you must have requested an extension by the original due date). If you already have an extension until October 15, that remains October 15 – it won’t be pushed back further even if the IRS had limited operations. At Remitian we have dedicated staff who will walk you through our platform to show you how simple it is to make payments for your state and federal tax needs, instead of hassling with those complicated tax portal system issues. Call us now at 1-877-8REMIT8.

During the 2018-2019 shutdown, for example, the IRS kept the start of the tax-filing season on schedule and did not delay the April 15 deadline. Similarly, in a 2025 scenario, we do not expect any deadline relief. The only time tax deadlines get extended is by specific legislation or IRS announcements (usually for disaster relief or similar, not for funding gaps). As of now, nothing like that has been announced – and the IRS’s plan assumes deadlines stay firm.

So, if you were hoping a shutdown means “I get more time to do my taxes,” unfortunately that’s not the case. It’s best to proceed with your tax filings as you normally would, on time. If you miss deadlines, the shutdown won’t be an acceptable excuse to automatically remove penalties. In short, handle your taxes on schedule, shutdown or no shutdown.

What should taxpayers do during a government shutdown? (Tips for Individuals)

Answer: For most individual taxpayers, the guidance is to keep calm and carry on with your tax tasks. Here are some practical tips to help you through a shutdown period:

• File Early (and Electronically if possible): If you haven’t filed your return yet (for example, those on extension until Oct 15), go ahead and file as soon as you can. Filing early means your return is in the pipeline before any prolonged slowdown hits[9]. Use e-file and direct deposit to ensure faster processing – electronic submissions are handled automatically even if some offices close.
• Keep Paying Taxes Normally: Continue to have your payroll taxes withheld, make your quarterly estimated payments, and pay any tax bills by their due dates. You can use IRS Direct Pay or our system (which supports all major tax payment types) to send payments electronically. These systems will function normally, ensuring your payments are credited on time.
• Use Online Tools: Take advantage of IRS online resources. For instance, if you need a tax transcript or want to check your account, the IRS Online Account system and Get Transcript tool are available. You can also find answers to many questions in the IRS’s online FAQs and knowledge base. Using these can save you from having to call an IRS rep.
• Be Patient with Refunds and Responses: If you’re waiting on a refund or an answer from the IRS, be prepared that it might take a bit longer than usual if the shutdown lasts more than a few days[8]. Try not to panic – as long as your filings are in order, the money will come. You can continue to monitor your refund status online. And if you sent the IRS mail, expect backlogs; they will eventually process everything when fully up and running.
• Stay Informed: Keep an eye on reputable news or IRS announcements. If anything changes (e.g. IRS decides to scale back operations or if Congress ends the shutdown), you’ll want to know. We’ll also update our guidance if new information comes out. If you want immediate help with any tax related matters, call us at 1-877-8REMIT8 or email us at support@remitian.com

Most importantly, don’t let the shutdown stress you out about taxes. The IRS has contingency plans to ensure the tax system keeps running[2]. Focus on what you can do: file on time, keep good records, and ask for help if you need it. Everything else will fall into place once the government resolves its funding issues.

Guidance for Tax Professionals & Accounting Firms

Answer: If you’re a tax professional or firm supporting clients during a shutdown, your role is especially crucial. Here’s how you can manage and assist your clients in this situation:

• Reassure and Educate Clients: Proactively reach out to clients and let them know that a government shutdown does not cancel tax deadlines[5]. Make sure they understand they must still file and pay on time. Many clients might falsely assume they get a break – clear that up early to avoid penalties later.
• Plan for Delays, Just in Case: While the IRS is initially remaining operational, advise clients that some things (like refunds or paper correspondence) could slow down if the shutdown is lengthy[8]. Set expectations accordingly. For example, a client’s response from the IRS on a matter might take longer – assure them this is normal under the circumstances and you will follow up as needed.
• Encourage E-filing & Digital Solutions: Guide clients toward e-filing returns and using electronic payment methods. As a firm, try to file all pending extensions or returns electronically. This avoids potential pile-ups in IRS mailrooms. Similarly, confirm that any tax payments are scheduled electronically so they’re recorded on time.
• Utilize Practitioner Hotlines (If Available): As an enrolled practitioner (CPA, EA, attorney), remember that the IRS Practitioner Priority Service line is a valuable resource. It’s typically reached at 1-866-860-4259 for tax pros with a valid power of attorney[10]. During the shutdown, the PPS line is expected to be operational with normal or limited service. Use it to get expedited help for client issues. (Do be prepared for longer hold times if many practitioners are calling at once.)
• Document Everything: If an IRS function your client needs is unavailable, document the impact. For instance, if an IRS office is closed and you can’t get a client’s issue resolved, keep notes of dates and attempts. This can be useful later to abate any penalties or explain delays caused by the shutdown.
• Leverage the Taxpayer Advocate Service (TAS): In extreme cases (e.g. a client is facing a financial hardship due to an IRS delay), consider reaching out to the Taxpayer Advocate Service. TAS offices generally remain open to assist with urgent issues, though they may triage cases to handle the most critical first[11]. They can sometimes intervene if a taxpayer is in a desperate situation.

Above all, as a firm, stay updated on IRS announcements and be ready to pivot. If the IRS issues new contingency plans or guidance, read those promptly and adjust your advice to clients. Your clients will look to you for clarity – by staying informed (via IRS news releases, professional tax bulletins, etc.), you can be the calm voice they need. Remember, we’re all in the same boat during a shutdown, and your expertise can help steady the course for worried taxpayers. If you need a walkthrough of these steps and how to secure your tax related matters call us at 1-877-8REMIT8.

Where can I get help with tax issues during a shutdown?

Answer: Even if parts of the government are closed, you are not alone when it comes to tax help. Here are several resources and support options available to you:

• IRS Support: As mentioned, the IRS is still available by phone (for both taxpayers and practitioners) in a shutdown’s early stages. You can call the main line or use online IRS tools. If one avenue isn’t working (say, phones are busy), try another (online resources or a local IRS office by appointment).
• Remitian’s Tax Help Line: We understand that navigating a tax issue during a government crisis can be stressful. That’s why we’re launching a dedicated support hotline for our users. You’ll be able to call 1-888-8REMIT8 (toll-free) to reach our support team for general questions, Our lines will connect you with experienced tax specialists. We even have access to Enrolled Agents (EAs) and Certified Tax Specialists we work with– federally licensed tax experts who can assist and, if needed, communicate with the IRS on your behalf. Tax Professionals: If you haven’t already, consider consulting with a tax professional (CPA, EA, or tax attorney). They stay up-to-date on the latest IRS guidance and can advise you on the best course of action. For example, an EA can use the IRS practitioner hotline and their insider knowledge to resolve issues even during a shutdown. Think of them as your expert advocate – sometimes a quick call with your accountant can save you hours of worry.
• Online Knowledge Base: Don’t forget the resources at your fingertips. Our Help Center (like this article) is constantly updated with FAQs and guides. We’ll post any significant updates about the shutdown’s impact on taxes here. Other reputable sites (IRS.gov, major tax preparation companies’ blogs, and news outlets) also publish useful FAQs[8]. A bit of reading can answer many “what if” questions you might have.

Final Thoughts: A government shutdown can be unnerving, but when it comes to taxes, the key is to stay the course. The IRS, for the most part, will keep on running, and your tax responsibilities remain in place. Use the resources available to you – whether it’s official IRS channels or our support services – to get through it smoothly. We’re keeping a close eye on the situation so we can continue to provide you with accurate, up-to-date information.

Remember, we’re here to help you every step of the way, shutdown or not. If you have more questions or a unique situation, reach out to us. We’ll get through this together, and your taxes will be one less thing you need to worry about.

Sources & References:

• Jackson Hewitt Tax Services – “What happens during a government shutdown?” (Sept 25, 2025) – Confirming that IRS historically stays open and that tax deadlines and requirements remain unchanged even if there’s a shutdown[5][1]. Also outlines potential slowdown in IRS services (refunds, customer support) if many employees are furloughed[8][9].
• Ed Zollars, CPA – Current Federal Tax Developments blog (Sept 30, 2025) – Analysis of the IRS’s FY2026 contingency plan, noting that the IRS would continue normal operations on October 1, 2025, with all 74,299 employees exempt from furlough thanks to multi-year funding[2][4]. Highlights that core functions like processing returns, answering phones, audits, collections, and appeals would carry on without interruption under a short-term shutdown[3][7].
• IRS Contingency Updates – Internal communications and IRS announcements have indicated that electronic tax systems (e-filing, Direct Pay, etc.) remain available during funding lapses, and that taxpayers should continue to meet their tax obligations on time despite the shutdown[5].
• IRS Practitioner Priority Service – The IRS provides a dedicated hotline (866-860-4259) for tax professionals with urgent client issues[10]. This service is a critical lifeline during a shutdown for resolving account problems and is expected to be staffed as long as IRS personnel are working.

• Aprio Tax Advisory – Government shutdown tax tips (Oct 2025) – Emphasizes that during the October 2025 funding stalemate, taxpayers “may experience longer wait times for refunds, limited IRS support, and postponed resolutions for pending issues,” and that there are no automatic extensions for filings or payments – reinforcing the need to meet all deadlines[8][5]. (Aprio is a leading tax advisory firm, and their insights align with official guidance.)

[1] [5] [6] [8] [9] Will the government shut down in 2025? | What should taxpayers know about a potential government shutdown?

https://www.jacksonhewitt.com/tax-help/tax-tips-topics/filing-your-taxes/what-happens-during-a-government-shutdown/

[2] [3] [4] [7] The IRS FY2026 Shutdown Plan: What Happens on October 1 if No Deal is Reached? — Current Federal Tax Developments

https://www.currentfederaltaxdevelopments.com/blog/2025/9/30/the-irs-fy2026-shutdown-plan-what-happens-on-october-1-if-no-deal-is-reached

[10] Practitioner Priority Service | Internal Revenue Service

https://www.irs.gov/tax-professionals/practitioner-priority-service-r

[11] IRS Activities Following the Shutdown | Internal Revenue Service

https://www.irs.gov/newsroom/irs-activities-following-the-shutdown

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