IRS Operations During Government Shutdown: What Corporate Taxpayers Need to Know

The federal government officially shut down at midnight on October 1. However, the IRS will continue normal operations for the next five business days, thanks to emergency funds from the Inflation Reduction Act (IRA).

In past shutdowns, the IRS had to pause most of its functions. This time, the agency’s contingency plan allows it to stay open temporarily. About 74,000 employees will keep working under normal conditions—at least for now.

After that five-day period, uncertainty returns. Congress has not yet reached a funding agreement, and the IRS plan does not explain what happens next. As a result, taxpayers and corporate filers should prepare for possible delays in:

• Ongoing appeals or examinations

• Guidance on new tax laws

• Processing of extended returns due October 15

If you don’t hear from your IRS agents after the fifth business day, they were likely furloughed. In that case, hold your position and wait for updates.

Unfortunately, an extension of the October 15 filing deadline seems unlikely. Continue preparing your returns and documentation as planned.

MASSIE will share updates as soon as the IRS releases more information. For now, plan ahead and stay ready for operational changes if the shutdown continues. And, don’t forget to watch Jason Massie‘s update.