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IRS Shutdown: What It Means for You — and Why You Should Still File by Oct. 15

The IRS has announced that most of its operations are now closed due to the federal government shutdown, which began October 1. According to CPA Practice Advisor, approximately 34,000 IRS employees have been furloughed, leaving less than half of the agency’s workforce active during the closure.

Here’s What to Know:

  • IRS staffing is reduced by nearly 50%. Of roughly 74,000 total employees, only 39,870 are considered “exempt” and continue working with pay.
  • Taxpayer Advocate Service offices nationwide are closed. Cases in progress will pause until the shutdown ends.
  • Furloughed employees may not work—even voluntarily. Non-exempt staff are in “non-pay, non-duty” status.
  • Back pay is uncertain. Although a 2019 law generally guarantees compensation once the government reopens, new OMB guidance suggests additional appropriations may be required.
  • Expect service delays. Calls, correspondence, refund processing, and audit responses are likely to be delayed until operations resume.

While certain critical IRS functions (such as criminal investigations, IT maintenance, and legal operations) remain active, most taxpayer services are suspended. With the October 15 extended filing deadline approaching, the IRS has not announced any postponement — so filers should continue preparing and submitting returns as planned.

What This Means for You:

Even with the IRS largely shut down, we are continuing to file all 2024 tax returns by the October 15 deadline. To minimize potential delays or lost paperwork, we strongly recommend that clients:

  • File returns electronically whenever possible.
  • Make all tax payments electronically through IRS Direct Pay or EFTPS.
  • Elect to receive refunds electronically via direct deposit.

Electronic filing and payment methods are still fully operational and provide confirmation of timely submission — which is particularly important during the shutdown.

At theKFORDgroup, our mission is to Make Financial Chaos Clear — even when the IRS isn’t answering the phones.


If you have a pending filing, payment, or refund question, please reach out to our team. We’ll help you stay compliant and confident through the shutdown.