We are closely monitoring the federal government shutdown that began today and its potential impact on the IRS and taxpayers.
IRS Will Remain Open — For Now
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The IRS announced that all employees will continue working for the first five business days of any shutdown.
- Salaries will be temporarily covered by Inflation Reduction Act funds.
- If the shutdown continues beyond that period, operations may be significantly reduced.
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All tax filing and payment deadlines are unaffected during the shutdown.
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The October 15, 2025 extended deadline for 2024 individual tax returns remains firm.
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Employers must continue making payroll tax deposits on schedule.
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Taxpayers must continue making installment payments as usual.
Possible Impacts if the Shutdown Persists
- In the 2018–2019 shutdown, the IRS faced:
- A backlog of over 5 million unanswered pieces of mail
- Weeks of delays in hiring and training for tax season
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Severely limited phone, fax, and in-person services
- A prolonged 2025 shutdown could cause similar disruptions.
What You Should Do
- Continue to meet all tax filing and payment deadlines
- Anticipate longer IRS response times for pending issues
- Stay in touch with us if you need help navigating delays or disruptions
We will continue to monitor developments and keep you updated.
Disclaimer: The information provided herein is for general informational purposes only and is not intended to be legal, investment or tax advice. It is not a substitute for professional legal, investment or tax advice, and you should not rely on it as such. No attorney-client or accountant-client relationship or any other kind of relationship is formed by any use of this information. The effective date of various provisions, amendments, and regulatory guidance may impact eligibility. The accuracy, completeness, correctness or adequacy of the information is not guaranteed, and dynamo HCM assumes no responsibility or liability for any errors or omissions in the content. You should consult with an attorney, investment professional or tax professional for advice regarding your specific situation.
