Due to a lapse in appropriations, Internal Revenue Service (IRS) operations are currently limited. Despite these limitations, the underlying tax law remains fully in effect, requiring all taxpayers—individuals, corporations, partnerships, and employers—to meet their tax obligations as normal. The IRS has published an update on the impact of the government shutdown on taxpayers and IRS services.

Mandatory Compliance and Payment Processing

All tax deadlines, including those covering individuals, corporations, partnerships, employers, and regular payroll taxes, remain in effect. Taxpayers must continue to file and pay taxes as normal.

The IRS will continue to accept and process all payments and remittances received. This processing applies whether the payment is received electronically or sent by mail. If a payment accompanies a paper tax return, it will still be accepted and deposited by the IRS upon receipt.

Filing and Refund Processing Protocols

While taxpayers may file electronically or on paper, the processing of paper returns will be delayed until full government operations resume. The IRS continues to carry out critical operations in preparation for the upcoming 2026 filing season, including testing and preparing filing season programs.

Generally, tax refunds will not be paid during a lapse in appropriations, though there is a significant exception for individual taxpayers. Refunds will continue to be paid for taxpayers filing Form 1040 if the returns are electronically filed, error-free, automatically processed, and designated for direct deposit. Given this exception, the IRS strongly encourages individual taxpayers to utilize electronic filing coupled with direct deposit to mitigate potential delays.

Limitations on In-Person and Live Support

In-person services are significantly curtailed during this period. IRS walk-in Taxpayer Assistance Centers (TACs) are closed. All pre-scheduled appointments at TACs are cancelled until the government reopens.

Additionally, appointments related to cases before the Independent Office of Appeals or the Taxpayer Advocate Service are cancelled while the government remains closed. IRS personnel are responsible for rescheduling these meetings once full government operations resume.

Live IRS telephone customer service assistance is limited. Tax professionals are encouraged to guide clients toward IRS.gov for information. Tax professionals, tax software companies, and the Free File program remain available resources.

Automated Systems, Transcripts, and Correspondence Backlogs

While live services are limited, automated applications and online resources remain largely accessible. The IRS website, www.IRS.gov, remains operational, along with some automated tools available on the site. Examples of automated applications that remain available include online payment agreements, Where’s My Refund, and the IRS2go phone application. Automated toll-free telephone applications also remain operational.

Regarding taxpayer correspondence, the agency can receive mail, but will generally not be responding to paper correspondence. Taxpayers (and practitioners on their behalf) who mail correspondence to the IRS should advise clients to anticipate a significantly longer delay for a response after the government reopens, as a correspondence backlog is expected to grow during the shutdown.

For historical filing information often required for preparing new returns, such as tax transcripts, the IRS encourages the utilization of automated tools, where this information remains available. Practitioners can learn more via "About Tax Transcripts". An exception to transcript limitations is that the IRS will be processing transcript requests specifically related to disaster relief.

Specialized Programs and Enforcement Activity

The Income Verification Express Service (IVES) remains operational during this period. IVES allows taxpayers to provide consent for third parties, such as mortgage lenders and banks, to request wage or tax return transcripts for income verification purposes. The IRS provides these tax records to a third party only upon the express consent of the taxpayer.

Conversely, the IRS will not be processing applications or determinations related to tax-exempt status or pension plans during the lapse in appropriations.

In terms of enforcement activity, compliance work necessary to protect statutes of limitations continues during the shutdown. Furthermore, work conducted by Criminal Investigation (CI) also continues throughout this period.

Tax professionals seeking a more exhaustive account of IRS operational status during the shutdown can refer to the extensive listing provided in the IRS lapse plan. The IRS has stated its commitment to updating the public webpage to provide the latest information to preparers and taxpayers.

Prepared with assistance from NotebookLM.