Effect of the Government shutdown on the IRS

On October 8, 2025, the IRS announced that it would furlough almost 50% of its workforce (about 34,000 employees. Below is an announcement of what services will be affected by these furloughs:

IRS outlines which services remain open and closed during shutdown (10-23-25)

During the government shutdown, taxpayers are still required to meet filing and payment deadlines, but refunds will only be issued to individual taxpayers (and only if the return is filed electronically and is error-free, and the refund is direct deposited), according to a statement released by the IRS on October 21, 2025. All tax deadlines remain in effect, and the IRS will continue to process electronically filed returns. Paper returns won’t be processed until full government operations resume, although checks sent in with these returns will be deposited.

 The IRS will generally not be responding to taxpayer correspondence during the shutdown and will not be processing applications or determinations for tax-exempt status or pension plans.

 Also closed during the shutdown are the:

• Taxpayer Assistance Centers;

• Taxpayer Advocate Services; and

• Independent Office of Appeals.

 The following services are open during the shutdown:

• Limited IRS telephone customer service (automated telephone applications are still open);

• Automated tools that provide transcript services and full-service transcript services for disaster victims only;

• Testing and preparation activities for the 2026 filing season;

• IRS Income Verification Express Service (a.k.a. IVES); and

• Criminal investigation activities.