The IRS has begun furloughing nearly half of its workforce under its shutdown contingency plan, leaving 53.6% of employees on duty and the rest in non-pay status. For tax professionals, this plan is more than just bureaucratic noise; it means delays across transcripts, notices, and assistance.
This isn’t the first time we’ve seen this. The last major furlough happened nearly seven years ago during the 35-day government shutdown of 2018–2019. Back then, tax practitioners experienced what we’re about to face again: long processing times, unreachable phone lines, and uncertainty about when normal operations would resume.
Whether this turns out to be a brief pause or a prolonged slowdown, tax professionals and their clients will be the ones feeling the ripple effects, well after the government turns the lights back on.
Here’s what’s likely to be impacted:
In other words, everything that requires human intervention at the IRS is about to slow to a crawl. *Insert annoying sigh here*
The IRS will continue to process electronic payments and e-filed returns, and filing deadlines still apply, but anyone hoping to call for status updates or manual account resolutions should expect frustration.
A recent Treasury Inspector General for Tax Administration (TIGTA) report warned that the IRS’s “adjustments inventory” could hit six million cases, surpassing even pandemic levels. Add furloughs to that, and it’s clear the backlog will only grow.
When the IRS slows down, your workload doesn’t. That’s where TaxNow makes a real difference.
With TaxNow, you can:
Here’s what you can do now to be ready:In short: while the IRS is on pause, you don’t have to be.
Tax professionals who thrive during uncertain times are the ones who stay proactive, communicate with clients, keep documentation tight, and use every digital tool available.
The IRS’s own leadership has encouraged taxpayers and practitioners to “use digital options when possible.” TaxNow takes that advice to the next level, providing real-time access to the data you need to keep your clients compliant and confident, even in a reduced-capacity environment.
The message for this season: stay patient, stay plugged in, stay ahead.With TaxNow, you can keep business moving while the IRS hits pause.
Get ahead of the slowdown. See how TaxNow keeps you connected to the IRS — even when they’re furloughed.
