As the US government shutdown drags into its second week, millions of taxpayers are growing anxious about whether the IRS will extend upcoming tax deadlines. With almost half of its employees furloughed without pay and offices closed, the agency is battling major disruptions just as the October 15 filing date approaches for those who got extra time to submit their 2024 tax returns. Confusion is spreading, and experts are warning that even though Washington is at a standstill, the tax clock isn’t stopping.
Tax deadlines remain unchanged
According to an emergency memo cited by Newsweek, the agency confirmed that “due to the lapse in appropriations, most IRS operations are closed.” Employees not listed as “excepted” or “exempt” have been placed in non-pay and non-duty status until further notice. Despite disruption, tax laws remain in effect, and so do all filing deadlines. Taxpayers who were earlier granted an extension still need to file their 2024 returns by October 15, 2025. Missing the deadline could lead to a failure-to-file penalty. Normally, 5% of the unpaid taxes are paid for each month the return is late. This comes along with the additional interest on outstanding balances.
“Tax laws are not delayed due to the federal government shutdown, which means the IRS is required to continue to collect any taxes due,” said Matt Hetherwick, chief program officer for the Accounting Aid Society in Detroit.
For now, there is no indication that the federal government will extend the October 15 filing deadline. The IRS has made clear that taxes remain due despite staffing shortages and office closures.
Nik Agharkar, owner of Crowne Point Tax, told Newsweek, “While you may be able to challenge some of the penalties assessed, the interest will always run and always be due. Just because the government is dysfunctional doesn’t mean you get to be! File on time and keep a record that you did so. Pay on time and keep a record that you did so. Taxes are always due, and filing is always mandatory.”
Disaster extensions still apply
Some taxpayers affected by federally declared disasters may still qualify for extra time to file. For instance, the California wildfire. This includes residents in parts of California, Texas, Kentucky, Mississippi, Virginia, and West Virginia, who could have until November 3, 2025, or later.
The IRS will process e-filed returns and payments through automated systems, though taxpayers can expect longer response times for inquiries. “Every government shutdown is different, but taxpayers could start to notice a delay in processing returns or issuing refunds,” said the chief tax officer for Jackson Hewitt Tax Services.
Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals, added that “there is no furlough in the filing deadline.” Experts are advising taxpayers to file electronically to avoid potential delays, and can go for direct deposit if expecting refunds. Those who still mail paper returns should be prepared for longer processing times and delays. “If you owe taxes, pay them electronically,” O’Saben added. “Trying to get a paper check for a refund could be much tougher right now.”
IRS staff sent home amid shutdown
The Associated Press reported that only 53.6% of IRS employees, around 39,870 out of 74,300, remain on duty. The IRS initially used funds from the Inflation Reduction Act to stay operational during the first five days of the shutdown, but the measure is no longer active.
President Donald Trump said last week that around 750,000 federal workers would be sent home without pay. The ongoing shutdown began on October 1, after Congress failed to reach an agreement on funding the government.