IRS Operations During Government Shutdown Continue

The Internal Revenue Service remained partially operational during a brief federal funding lapse in October 2025. Using contingency funding, the agency continued core work while reducing some taxpayer services until Congress restored full appropriations.

IRS Continues Core Functions Despite Funding Lapse

The IRS said its “core operations” continued even as appropriations lapsed at the start of fiscal year 2026. In a newsroom statement issued October 1, the agency said it would operate through midnight on October 7 using available funding and established shutdown procedures.

During that period, IRS offices maintained regular hours, and most online services remained available. The agency said these steps were part of standard contingency planning used during short-term funding gaps.

According to the IRS, the goal was to limit disruption for taxpayers while lawmakers worked to restore full government funding.

IRS Keeps Online Tools and Payment Processing Active

As the funding lapse continued, the IRS moved into a more limited operating posture. In a follow-up update, the agency said IRS.gov and certain automated tools would remain accessible, allowing taxpayers to manage basic tasks online.

IRS Continues Accepting Electronic and Mailed Payments

The agency confirmed it continued to accept and process tax payments received electronically and by mail. Most automated toll-free phone applications also remained operational, even as live assistance was curtailed.

The IRS said these functions were prioritized to avoid interruptions to statutory deadlines, which remained in effect throughout the shutdown period.

IRS Allows Limited Enforcement Activity to Proceed

The IRS also said certain enforcement work continued during the lapse. Criminal investigation activity moved forward, along with compliance actions tied to statutes of limitations.

According to the agency, these activities fall under legal exceptions that permit limited operations during an appropriations lapse.

IRS Suspends In-Person and Live Assistance Services

While automated systems stayed active, the IRS temporarily reduced several taxpayer-facing services. The agency said walk-in Taxpayer Assistance Centers were closed during the shutdown period, and scheduled appointments were canceled until offices reopened.

Live telephone assistance was limited, and the IRS generally did not respond to paper correspondence during the lapse. The agency warned that mail backlogs could grow, potentially delaying responses once normal operations resumed.

These service reductions reflected staffing constraints typical during funding gaps and aligned with prior IRS shutdown procedures.

IRS Restores Normal Operations After Funding Resumes

After Congress approved full-year funding, the IRS announced it had resumed normal operations. Taxpayer Assistance Centers reopened, and examinations, collections, and appeals activity restarted.

The agency directed taxpayers and tax professionals to topic-specific “resumption” FAQs explaining how cases would proceed. While offices reopened, the IRS said accumulated call volume and casework could still affect response times.

The Taxpayer Advocate Service also resumed operations, though it cautioned that delays were possible as staff addressed cases impacted by the shutdown.

Federal Law Limits IRS Activity During Appropriations Lapses

Federal agencies determine which activities can continue during a funding lapse under the Antideficiency Act. The law generally bars agencies from obligating funds without appropriations, with limited exceptions.

Guidance from the Department of Justice’s Office of Legal Counsel explains that agencies may continue activities authorized by law or necessary to protect human life or property. The IRS has historically relied on this framework to maintain essential operations during short-term shutdowns.

Taxpayers Face Ongoing Deadlines and Possible Delays

For taxpayers, the October 2025 shutdown did not pause filing or payment deadlines. Electronic services and payment processing continued throughout the lapse, reducing the risk of penalties tied to missed deadlines.

However, taxpayers who rely on in-person assistance, live phone help, or mailed correspondence may continue to experience delays as the IRS works through shutdown-related backlogs. The agency has encouraged taxpayers to use online tools when possible and to allow extra time for responses involving paper submissions or complex issues.

Sources

• IRS, “Statement on IRS Operations During the Appropriations Lapse in FY 2026,” October 1, 2025
  
  
• IRS, “Statement on IRS Operations Limited During the Lapse in Appropriations; Regular Tax Deadlines Remain”
  
  
• IRS, “IRS Resumes Normal Activities Following the 2025 Lapse in Appropriations”
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‍By William Mc Lee, Editor-in-Chief & Tax Expert—Get Tax Relief Now