IRS updates government shutdown plan

Update 10/8/25 (AICPA): "Today, as we enter the 8th day of the government shutdown, the IRS furloughed approximately 46% of its employees. In the IRS’s updated contingency plan they outline the steps they are taking to mitigate some of the impact of the government shutdown, including retaining the majority of its employees and focusing on retaining the staff necessary to provide much-needed guidance for PL 119-21/HR 1. Nevertheless, we are deeply concerned that the IRS will not have the ability to meet all of the needs of our members during this filing season.

The AICPA continues to urge the IRS to except 100% of its employees for the duration of the shutdown. Any shutdown can create greater backlogs for the IRS and hardships for taxpayers and practitioners. We will monitor this situation as more details are released and will consider additional actions such as requesting shutdown relief for taxpayers and their preparers as they try to compliance with the tax law."

Related AICPA resources: 

• JoA Article: IRS furloughs some employees, closes most operations
• JoA podcast: Shutdown concerns, the quest for tax guidance, the future of IRS service
• Tax News FAQ: Preparing for a potential government shutdown: What tax practitioners should know
• AICPA Comment Letter Requesting IRS Contingency Plan for Possible Government Shutdown

9/29/25: 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

Learn more in this AICPA press release.