The Internal Revenue Service is operating with reduced capacity following the federal government shutdown that began on October 1, 2025. While in-person and phone services have been paused, taxpayers and businesses can still apply online for IRS installment agreements and short-term payment plans to stay compliant with their tax obligations.
Although nearly half of IRS employees are furloughed, the agency has maintained essential operations that allow taxpayers to make payments, file returns electronically, and check refund status. The IRS confirmed that all tax deadlines remain in place despite the shutdown. Payments submitted electronically or by mail will continue to be processed, but paper returns and correspondence will not be reviewed until the government reopens.
An IRS spokesperson stated that the agency’s top priority is to ensure taxpayers can continue to fulfill their obligations. “Taxpayers should act quickly to file and pay on time to avoid penalties and interest,” the spokesperson said. “Automated systems remain operational even while staffing is limited.”
In addition to tax operations, other federal agencies, such as the Treasury Department and Federal Aviation Administration, have reduced staffing. Air traffic controllers continue to work to protect the flying public, though many other federal employees across Washington, San Antonio, and San Francisco are waiting for pay and reimbursement.
The IRS online system enables individuals and businesses to apply for installment agreements without needing to contact a live agent. Taxpayers can also request short-term payment plans if they expect to resolve their balance within 180 days. Continuing to make payments during the shutdown helps avoid default and keeps accounts in good standing.
A San Francisco-based CPA noted that many clients are using online systems as the safest and fastest option. “Businesses and taxpayers should rely on electronic payment plans while in-person services are unavailable,” she said. “Everything submitted online is recorded immediately, even when offices are closed.”
Low-income taxpayers and small businesses are encouraged to use the online application tools to avoid missing payment deadlines. Those unable to pay in full may qualify for reduced penalties or deferred payment arrangements once operations resume. The IRS also recommends checking for the “locked padlock icon” before entering payment information to ensure access through a secure system.
The shutdown began after Senate Democrats and Republicans failed to reach an agreement on a new federal budget bill. The disagreement over government spending priorities, including funding for low-income programs, federal employees, and business tax credits, led to agencies closing or limiting services.
Senator Bernie Sanders called the shutdown “an unnecessary burden on working families and federal employees.” He urged congressional leaders to act quickly to pass a short-term spending measure. “It’s time to put the American people first and reopen the government,” he said.
While negotiations continue in Washington, several proposals have been introduced to provide temporary relief for furloughed federal employees and to restore critical agency operations. However, as of early November, no bipartisan bill has been approved.
Nearly half of the IRS staff are furloughed under the contingency plan, leaving the agency with limited capacity to handle paper returns, appeals, or mailed correspondence. Walk-in Taxpayer Assistance Centers remain closed, and appointments with the Taxpayer Advocate Service have been canceled.
Refunds for electronically filed returns continue to be processed if they are error-free and use direct deposit. Paper-filed returns, however, will not move forward until the shutdown ends. The IRS has warned that the backlog could take weeks to resolve once full operations resume.
Despite limited staffing, the IRS continues to operate essential systems such as “Where’s My Refund,” “Get Transcript,” and the Online Payment Agreement portal. These services allow taxpayers to check refund status, verify income, and manage payment agreements remotely.
Taxpayers should expect ongoing delays for mail processing, refund checks, and responses to notices. The IRS encourages all taxpayers to document every filing, payment, and notice received during the shutdown. Those who are unable to determine their payment status online should retain records to prove timely compliance once services resume.
Experts warn that even after Congress approves a funding plan, it could take several weeks for the agency to return to full capacity. Businesses with payroll or estimated tax obligations are urged to pay electronically and avoid submitting paper checks by mail during the shutdown period.
Taxpayers still have a clear path forward despite the ongoing government shutdown. Filing electronically, making payments through IRS.gov, and applying online for installment agreements are the most reliable ways to stay compliant. Acting now helps prevent penalties, interest charges, and potential default on payment plans.
For federal employees, including those working in the IRS and Federal Aviation Administration, pay will resume retroactively once Congress passes an approved funding bill. Until then, furloughed staff remain without pay, and essential workers continue their duties without immediate compensation.
The following official and authoritative references provide verified updates on IRS operations, contingency measures, and ongoing federal budget negotiations. Each source reflects the most recent information available as of early November 2025.
The IRS and Treasury Department regularly post revised guidance once the shutdown status changes, and legislative updates are tracked through Congress.gov. Reviewing these sources ensures that all actions taken—whether filing, paying, or applying online—are aligned with current federal guidance.
Schedule your confidential tax relief review today
© 2025 Get Tax Relief Now™. All rights reserved.
