IRS Services Limited During Ongoing Government Shutdown

As the federal government shutdown continues, many IRS operations are on hold. Since October 8, the agency has been under a broad furlough, leaving only a fraction of employees on duty. This means taxpayers and professionals can expect longer wait times, slower responses, and possible delays with return processing or issue resolution.

Currently, about 39,000 IRS employees, those considered essential for core tax law operations, are still working. That’s less than half of the agency’s normal workforce. The National Treasury Employees Union has already warned the public to expect backlogs and longer response times until normal operations resume.

What’s Still Running

The IRS is prioritizing essential functions like processing tax returns and keeping core systems online. Some staff in taxpayer account management and IT are still working to keep operations moving.

What’s Affected

• Most IRS enforcement and compliance divisions have been heavily reduced:

• About 75% of revenue agents in the Large Business and International Division are furloughed

• Roughly 67% from the Small Business/Self-Employed Division

• Around 85% from the Tax-Exempt and Government Entities Division

The Taxpayer Advocate Service and Tax Court proceedings are also paused, which means unresolved cases and appeals will likely face significant delays.

Furloughed IRS employees are not allowed to work at all, not even voluntarily. This complete work stoppage will increase backlogs the longer the shutdown lasts.

What This Means for Taxpayers

While tax return filing and processing are still underway, many other areas will move more slowly. For example, if you received a notice about a late filing or balance due and already submitted documentation showing timely filing, resolution may take much longer than usual. With fewer staff in communication and enforcement roles, departments aren’t coordinating as efficiently.

If you’re waiting for a response or need IRS clarification, be prepared for slower turnaround times.

At Kamish & Associates, we’re monitoring the situation closely. Our team is here to help you navigate any challenges, track updates, and handle correspondence to minimize disruptions.

If you have questions about how this may impact your specific tax situation, contact our office and we’ll guide you through your next steps.