IRS releases government shutdown plan
September 29, 2025
On September 29, the IRS released a FY2026 Lapsed Appropriations Contingency Plan in the event of a government shutdown. All IRS employees would continue working during a shutdown, effective for the first five business days of a lapse of appropriations.
It is anticipated, due to what has been the experience in prior years, that a government shutdown could cause harm to our tax administration system. The AICPA has submitted a comment letter requesting that the IRS issue a plan allowing all IRS employees to continue working during a shutdown, or at least to retain more employees than in prior shutdowns. The letter mentioned the impact on the tax community of the 2019 shutdown, including:
- Issuance of automated IRS collection notices without any ability to resolve
- Suspension of audit, examination, and appeals activities
- Challenges with online account access and electronic payments
- Substantial wait times when IRS phone services resumed