IRS Resumes Normal Operations After 2025 Lapse in Appropriations

The IRS has resumed normal activities following the conclusion of the 2025 lapse in appropriations, including reopening Taxpayer Assistance Centers (TACs) nationwide. Taxpayers and tax professionals with matters that were affected by the shutdown should be aware of updated guidance across several key areas.

Understanding What the IRS Resumption Means for Taxpayers

When appropriations lapse, IRS operations scale back significantly, which can delay appointments, pause certain compliance actions, and affect the processing of applications and forms. The resumption of full operations signals that these pauses are lifted and that affected matters are being worked through in priority order.

For taxpayers who had pending interactions with the IRS — whether related to disaster tax relief, audits, collections, or appeals — understanding how the IRS is restarting each function helps avoid missteps or missed deadlines.

Taxpayer Services and Appointments

Taxpayers whose TAC appointments were canceled during the shutdown may use the SMART Scheduler on IRS.gov to reschedule, provided they meet certain criteria. Others may call the IRS directly to rebook. For current processing times on specific tax forms, the IRS maintains a live processing status page.

Audits and Collections

Taxpayers and representatives with open examination cases should consult the IRS Exam Resumption FAQs for guidance on how audits affected by the shutdown are being restarted. For collection matters — including liens, levies, notices of deficiency, penalties, and passport restrictions — the IRS has published separate Collections Resumption FAQs covering each issue type.

Appeals

Taxpayers with cases in IRS Appeals that were disrupted during the shutdown can find specific guidance in the Appeals Resumption FAQs on IRS.gov.

Taxpayer Advocate Service

All Taxpayer Advocate Service (TAS) offices have reopened. Due to the backlog created by the shutdown, TAS is prioritizing the most urgent cases first. Taxpayers reaching TAS by phone may reach voicemail; leaving a detailed message with a case number, if applicable, will help ensure a timely callback.

Tax-Exempt Organizations and Retirement Plans

The IRS has fully resumed processing Determination Letter applications for tax-exempt status and Voluntary Compliance Statement applications for retirement plans. Processing times may still be longer than usual due to the shutdown backlog.

How to Verify the Status of Your IRS Matter After the Resumption

Taxpayers with open disaster tax relief claims or other pending federal tax matters should first check the IRS newsroom for FAQs on any resumption relevant to their situation. For matters involving disaster relief eligibility, verify current deadline status directly on the IRS Tax Relief in Disaster Situations page, as those programs operate separately from the shutdown resumption and have their own effective dates.

What Taxpayers Should Do Next

Taxpayers should review any IRS correspondence received before or during the shutdown to determine whether any deadlines or appointments require rescheduling. If you have an open IRS relief case, audit, or collections matter, consult the applicable IRS resumption FAQ before taking action. For complex situations, a licensed tax professional can help you navigate restarted timelines and avoid unintentional penalties.

Why This Matters for Individuals and Businesses

A lapse in appropriations creates a gap in IRS services that can have downstream effects on taxpayers — delayed refunds, paused installment agreements, and unresolved disputes can all compound financial pressure. The IRS resumption of full operations is a positive development, but it does not automatically reset every deadline or waive any fees. Taxpayers should proactively confirm the status of their matters rather than assume continuity from before the shutdown.

Sources

• IRS – Resumes Normal Activities Following the 2025 Lapse in Appropriations (add this as the primary source citation)
• IRS – Tax Relief in Disaster Situations

By William Mc Lee, Editor-in-Chief & Tax Expert—Get Tax Relief Now