Key Takeaways
- Continue to file and pay on time — statutory Internal Revenue Service (IRS) deadlines still apply, even during a furlough.
- Expect slower response times for notices, rulings and correspondence and use IRS online tools whenever possible to manage accounts and payments.
- Stay in communication with your tax practitioner, document all interactions and monitor IRS and American Institute of Certified Public Accountants (AICPA) updates as guidance may evolve.
As a result of the ongoing government shutdown, the Internal Revenue Service (IRS) is furloughing around 35,000 employees, which could slow or pause many of its regular services. While key systems will keep running, taxpayers should expect delays in service, correspondence and manual processing.
Here’s what you need to know.
What’s Likely to Be Delayed
- Customer Service: Phone lines may go unanswered and responses to collection notices or other correspondence will be delayed. Taxpayer Advocate Service cases will also be impacted, as all offices across the country are closed.
- Audits, Appeals and Collections: New audits and appeals are likely to pause and non-automated collection activity will slow down. Automated notices will still go out.
- IRS Guidance and Rulings: Work on private letter rulings (PLRs), determination letters and most other guidance will likely be delayed while IRS chief counsel focuses on One Big Beautiful Bill Act (OBBBA) guidance and legally required projects.
What Will Continue to Operate
During a furlough, the IRS plans to keep its core systems running:
- Processing of e-filed returns and payments.
- Revenue collection and automated compliance programs.
- Criminal tax investigations and key enforcement functions.
- Online tools such as IRS Online Account, Where’s My Refund and electronic payment options.
These may move more slowly than usual, but they’ll remain available. Keep in mind, however, that technical support for online tools may be limited or unavailable.
Deadlines Still Apply
All filing and payment deadlines remain in effect, including the October 15 extended due date for individual returns. The IRS will also continue to send automated, time-sensitive correspondence, even if fewer staff are available to respond.
Looking Ahead
The furlough could affect preparation for the 2026 filing season, with potential delays in system updates, forms and case processing once normal operations resume. Because IRS hiring, training and internal support will be delayed, this could lead to other impacts on the 2026 filing season.
What You Should Do
- File and pay on time — deadlines won’t be extended.
- Expect slower responses from the IRS.
- Use online tools whenever possible.
- Keep good records of any correspondence or notices.
While IRS essential systems will stay up and running, human-staffed functions — like audits, appeals and customer service — will slow or pause. Stay current on deadlines, document your interactions and expect delays once the IRS returns to full operations.
Proactive planning and communication will be key to minimizing the impact during this period of reduced IRS operations.
We Can Help
During an IRS furlough, experienced guidance is essential. The PKF O’Connor Davies Tax Controversy team offers deep insight into IRS operations and procedures, with firsthand experience from within the agency. Our professionals understand how to navigate delays, anticipate evolving guidance and help clients stay compliant amid uncertainty.
Whether you’re responding to IRS notices, managing audits or appeals or planning around potential disruptions, our team can help you take a proactive approach and minimize the impact on your business or personal tax matters.
Contact Us
If you have any questions, please contact your PKF O’Connor Davies client service team or:
Kelly Morrison Lee, JD
Managing Director
Tax Controversy Practice
kmorrisonlee@pkfod.com