Government Shutdown: What It Means for Taxpayers and IRS Operations

October 13, 2025
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Kira Wheat | CPA

The ongoing federal government shutdown has limited operations across many agencies, including the Internal Revenue Service (IRS). While the duration of the shutdown remains uncertain, HHM CPAs continues to operate as usual, working diligently to minimize any disruption to our clients.

Below are a few important considerations to keep in mind during the shutdown.

Tax Filing and Payment Obligations

Even during a government shutdown, all tax obligations remain in effect. This means that:

  • Taxes—including estimated payments and payroll taxes—are still due on their regular deadlines.
  • Tax returns should continue to be filed on time.
  • You should send your records and data to us according to your usual schedule.

Failure to meet filing or payment deadlines could still result in penalties, even if the IRS is operating with limited capacity.

Electronic Filing and Payments

Given that IRS taxpayer services may be reduced, we strongly recommend filing your returns and making payments electronically.

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Electronic filing:

  • Is the fastest, most reliable method for submission.
  • Reduces the risk of processing delays and lost mail.
  • Ensures payment receipts and confirmations are properly recorded.

IRS Correspondence and Communications

During a shutdown, reaching the IRS by phone may be difficult or delayed. However, automated systems may still send notices or letters.

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If you receive any IRS correspondence during this time:

  • Please forward it to us right away.
  • Do not ignore the letter, even if the notice seems routine.

We will review all correspondence and advise on next steps to ensure you remain compliant and informed.

IRS Examinations and Audits

IRS examinations and other in-progress casework will likely be paused during a shutdown. Our team will coordinate with IRS representatives to manage deadlines, reschedule meetings, and ensure that no important milestones are missed.

If you have any questions or concerns, please do not hesitate to contact us at 423.756.7771.

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