IRS Shutdown: Services Limited, But Deadlines Haven’t Changed

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TaxNow
04 Nov 2025
IRS Shutdown- Services Limited, But Deadlines Haven’t Changed Long

Even with parts of the federal government temporarily shut down, the IRS wants taxpayers to know one thing loud and clear: regular tax filing and payment deadlines remain in place.

In a statement released by the IRS, the agency confirmed that it’s operating under a “lapse in appropriations,” meaning many day-to-day functions are paused or scaled back, but legal obligations to file and pay taxes remain in effect.

What's Actually Happening

Here’s the quick version:

The IRS is running with limited operations until Congress approves new funding.
Taxpayer Assistance Centers (TACs) are closed, and live phone support is extremely limited.
Online tools, including IRS.gov and third-party transcript tools, including TaxNow, remain available for most self-service functions; the IRS Central Authorization File unit remains active and operational for processing Forms 2848 and 8821.
Electronic payments and e-filed returns are still being accepted and processed.
Paper filings and correspondence will likely face delays.
Individual tax refunds are generally paused during this period, except for individual Form 1040 returns that are electronically filed, error-free, and directly deposited. Those refunds may still be automatically processed. The IRS is urging taxpayers to file electronically with direct deposit to avoid delays.
While the IRS has not explicitly confirmed, it appears as though certain business tax refunds, including Employee Retention Credit refunds, are being processed in the normal course.

In other words, the IRS may be short-staffed, but it’s still open for business where it counts and expects taxpayers to meet their deadlines.

What Hasn't Changed

Despite limited operations, the IRS confirmed that all regular tax deadlines remain in effect. That includes:

Individual income tax returns (including the recently passed extended deadline for 2024 1040s, which fell on October 15, 2025)
Corporate, partnership, and payroll tax filings
Quarterly estimated tax payments (including upcoming corporate and individual Q4 payments due on December 15 and January 15, respectively)
Any scheduled deposits or remittances

If you’re filing or paying late, penalties and interest still apply as usual. The IRS emphasized that there is no automatic extension simply because of the shutdown.

So, even though you may not be able to get someone on the phone or visit a TAC in person, your tax deadlines haven’t budged an inch.

How This Impacts Tax Pros and Businesses

For tax professionals, this moment highlights the importance of automation and electronic processes. With reduced staffing and slow paper handling at the IRS, e-filing and digital recordkeeping are more critical than ever.  Tax professionals should also expect extremely long wait lines on the Practitioner Priority Service (PPS) line and should seek to minimize IRS phone calls.

Refunds for electronically filed returns with direct deposit may still be processed normally but paper returns and correspondence could experience significant backlogs. If you have clients waiting on responses or paper-filed refund checks, manage their expectations accordingly.

IRS offices that handle examinations, appeals, and taxpayer advocacy are also largely paused, so any pending cases or responses may be delayed until funding is restored.

What You Can Do Now

Here are a few proactive steps for you and your clients:

Keep filing and paying on time. Even if the IRS is short-staffed, legal obligations haven’t paused.

– File electronically whenever possible. E-filing and direct deposit minimize disruptions.

– Avoid paper if you can. Mailed returns, payments, and correspondence will sit in a queue.

– Use online tools rather than phone calls. With the IRS phone lines short-staffed, tax professionals should leverage online tools and tax transcripts as much as possible.

Track everything. Keep confirmation receipts, payment records, and proof of timely filing.

– Stay alert for updates. The IRS will post status changes as funding is restored and operations resume.

When the IRS Hits Pause, Stay in Motion

The IRS may be partially offline, but tax compliance isn’t. Filing and payment deadlines remain in full effect, even while service centers, phone lines, and paper processing are on pause.

At TaxNow, we’ll keep monitoring IRS updates and flag any changes to filing deadlines, refund processing, or transcript access as soon as they’re announced.

       Reference: IRS Statement on Operations Limited During the Lapse in Appropriations (irs.gov)

Stay ahead of the delays.
With TaxNow, you can pull IRS transcripts, monitor refund data, and keep clients informed,  even when the IRS isn’t picking up the phone.

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