2025 IRS Shutdown Questions Answered: What Taxpayers Need to Know

The 2025 IRS shutdown has raised many questions for taxpayers and small business owners across the country. With most operations paused and employees sent home, understanding how this affects you is crucial—especially if you owe taxes, have unfiled returns, or are under audit.

How Does the Government Shutdown Affect the IRS?

During the IRS shutdown 2025, most of the agency’s operations have come to a standstill. The IRS has furloughed a majority of its employees, halting essential services such as collections, appeals, and audits. Even the Taxpayer Advocate Service is unavailable during this time.

However, some basic functions will continue—like mail intake, return processing, and certain automated systems. Keep in mind that customer service will not be available, and you should expect significant delays in communication or case resolution.

How Long Will It Last?

That remains unknown. The last major IRS shutdown, which occurred during President Trump’s first term, lasted 35 days and took nearly a year for the IRS to clear its backlog. The current shutdown will likely delay processing of returns, appeals, audits, offers, and collection actions, creating a ripple effect that taxpayers may feel well into next year.

What Can You Do to Mitigate the Shutdown?

Here are some proactive steps to take while the IRS is closed:

• Use IRS Direct Pay to make secure tax payments.

• Continue paying payroll taxes through the EFTPS payment system.

• E-file your returns whenever possible to minimize processing delays.

• If mailing returns, use certified mail with a green return card to ensure your documents are trackable.

• Create an account at IRS.gov to access tax transcripts or verify your information.

What If You’ve Been Garnished?

If your bank account or 1099 income has already been garnished, note that this is typically a one-time action. Because of the IRS shutdown, they will not issue additional garnishments for now.

However, if your paycheck is being garnished, those deductions will continue since your employer automatically sends those payments. Be sure to fill out your dependents sheet and return it to your employer—this helps ensure you’re allowed to keep the minimum amount of income necessary to support yourself and your family.

What If You Have Unfiled Returns?

Now is the perfect time to get your back taxes in order. The IRS requires the last six years of tax returns to be filed before you can set up a payment agreement. Use this downtime to hire an experienced tax relief specialist who can help you file correctly and prepare for when the IRS resumes normal operations.

Alta Tax Relief’s team can help you gather and file your unfiled tax returns, even during the shutdown. Learn more about our process on our homepage.

What If I Have Deadlines With IRS Collections, Appeals, or Audits?

Continue preparing all necessary documents. Even though the IRS is not reviewing cases right now, mailing or faxing your information ensures your compliance. Once the IRS reopens, your submissions will already be in their system for review.

Should I Make Estimated Tax Payments During the Shutdown?

Absolutely. Continue to make your estimated tax payments to avoid penalties. Staying current with your payments will help you stay compliant and prevent unnecessary collection issues when IRS operations resume.

Need Help Navigating the IRS Shutdown?

The IRS shutdown 2025 can cause confusion and uncertainty for anyone dealing with tax debt, unfiled returns, or active audits. Don’t wait until the IRS reopens to get ahead of your situation.

Alta Tax Relief is here to help you prepare, file, and protect your finances during this downtime. Our team of tax experts can:

• File your missing returns

• Stop or minimize IRS collections

• Negotiate tax relief and payment plans once the IRS reopens

📞 Contact ALTA Tax Relief today for a free consultation and personalized tax relief strategy.