The government shutdown, which began October 1, 2025, will soon impact the IRS. According to the 2026 Lapsed Appropriations Contingency Plan, released by the IRS on September 29, 2025, the IRS will continue to operate for five business days after the government shuts down. Because of the Inflation Reduction Act, the IRS was provided with supplemental appropriations that will allow the IRS to be fully operational through October 7, 2025 (or possibly longer). If Congress is unable to pass legislation to fund the government when the IRS runs out of funds, taxpayers and tax professionals should be aware of the following (by no means an exhaustive list):

• Tax filing deadlines will not change.
• Tax payment deadlines will not change.
• Interest and penalties will continue to accrue for tax deficiencies.
• Automated notices may continue to be sent by the IRS, including collection notices, notices of intent to levy, and warnings of asset seizures with no means of resolution.
• Customer service and refund delays.
• A potential for online account access to be unreliable, varying ability to make payments electronically, and an inability of the IRS to process critical tax documents.
• The 2026 filing season may not start timely or efficiently. For instance, depending on the length of the government shutdown and the impact on the IRS, the IRS may be unable to finalize the 2025 forms and publications that are needed to file tax returns, and e-filing capabilities may not be readily available, etc.

In a letter to the Acting Commissioner, Scott Bessent, which urged the IRS to announce its contingency plan in preparation for the government shutdown, the AICPA stressed its concerns and said “[t]he processing of tax returns and collection of tax revenue is a critical government function that should continue regardless of a government shutdown, and, at a minimum, taxpayers should have recourse to protect their rights and property. The IRS must keep all essential positions working during the shutdown to help make the 2025 extended filing season operate as efficiently as possible and allow for a smooth start to the 2026 filing season.”

How long the government shutdown will last and the impact on the tax community remains to be seen. On October 3, 2025, the Daily Tax Report published by Bloomberg Tax reported that a “person familiar with the situation” said that the IRS is planning to furlough 35,000 employees, just less than half of its workforce, if the government shutdown continues past October 7, 2025. In the meantime, taxpayers should continue to file returns and remit payments to avoid penalties.

One thing we do know for certain, there will be no Tax Forum shutdown: So why not join us this fall? It’s the perfect season to attend one of our programs. The first sessions of our signature Tax Planning Forum® and Fundamentals of Flow-Through® programs are less than two weeks away, so if you haven’t registered yet, we urge you to do so right away—especially for our in-person programs in Las Vegas and Orlando where hotel space is limited and filling up quickly.