IRS Furloughs Nearly Half Its Staff - Here’s What It Means for You

What’s Happening

Due to the lapse in federal funding, the IRS has placed nearly half of its workforce on temporary unpaid leave, halting most of its day-to-day operations.

Here’s what’s affected:

• IRS Call Centers & In-Person Help: Taxpayer assistance lines and offices are mostly closed.‍
• The Taxpayer Advocate Service: Ceasing operations until funding resumes.
• Mail & Notices: Paper correspondence and notices will likely sit unprocessed for now.
• Administrative & Planning Functions: Most internal IRS operations are paused.

Filing Deadlines Still Apply

Even during a government shutdown, tax deadlines do not stop.

If you filed for a six-month extension on your 2024 taxes, your return is still due October 15.

You should continue to:

• File electronically (returns are still being timestamped and accepted)
• Pay any balance due through IRS.gov or EFTPS
• Keep all confirmation receipts for your records
  
  

What’s Still Running

Despite the furloughs, about 40,000 IRS employees remain on the job handling critical functions, such as:

• Processing e-filed returns and payments
• Preparing for the 2025 filing season
• Maintaining systems tied to the Social Security Administration and Treasury operations
  
  

Electronic systems - including e-filing, online payments, and transcripts - remain operational, though you may experience slower processing times.

What This Means for You

Here’s what to expect over the coming weeks:

• Delays in refunds and correspondence: Paper filings, amended returns, and notice responses will take longer.
• No pause on penalties or interest: Payment deadlines and compliance timelines still apply.
• Limited communication: IRS representatives are unavailable until funding resumes.
• Stay proactive: Keep filing and paying as usual to avoid future complications.
  
  

Our Take: Stay the Course

The government shutdown has caused a wave of uncertainty — and understandably, frustration — especially as the IRS scales back operations. But here’s the good news: this is a slowdown, not a stop.

Your filings, payments, and records remain completely secure. Processing times may stretch a bit, but the system itself isn’t shutting down. Deadlines still apply, and we’ll continue tracking IRS updates daily to keep you informed about any changes to filing dates, payment relief, or service restorations.

If you’re waiting on a refund, facing an upcoming extension deadline, or have an open IRS matter, now is the time to stay proactive. Reach out to your Gelt advisor for guidance — we’ll make sure your filings stay compliant and your peace of mind stays intact.

The key right now: stay calm, stay informed, and stay the course. Gelt is here to guide you through every step until operations return to normal.