In the event you filed an extension in your 2024 taxes, you could be fearful about how the current federal authorities shutdown may have an effect on your tax return or refund. Though a shutdown could seem regarding, the excellent news is the IRS remains to be working usually, at the least for now. Meaning taxpayers who filed for an extension nonetheless have to submit their tax returns by Oct. 15, similar to another 12 months.

Let’s go over how a authorities shutdown impacts the IRS and what taxpayers can count on.

What occurs to the IRS throughout a authorities shutdown?

When a federal authorities shutdown happens, most federal companies are required to pause nonessential operations till Congress passes a seamless decision or spending invoice to revive authorities funding.

Nevertheless, the Inner Income Service particularly operates below a contingency plan that enables important operations to proceed quickly (for at the least the primary 5 enterprise days) due to supplemental funding from the Inflation Discount Act of 2022.

If Congress doesn’t cross a spending invoice or a seamless decision inside the five-day timeframe, disruptions could happen. However even when that occurs and IRS operations start to scale down, that doesn’t change the tax regulation — you continue to have to file and pay taxes as standard to keep away from penalties.

What this implies for you

• The IRS is constant regular operations for at the least the primary 5 enterprise days of the federal government shutdown.
• Tax returns for people, companies, and tax-exempt organizations are nonetheless being processed.
• Most e-filed returns will proceed to be processed as regular.
• The tax deadline remains to be Oct. 15, 2025, for people who filed a tax 12 months 2024 extension to file.
• Tax refunds will proceed to be issued (simply be sure to decide on direct deposit if attainable, to keep away from delays).
• Curiosity and penalties will proceed to accrue on unpaid taxes through the shutdown.

What might be affected

Whereas the IRS operations proceed below the contingency plan, some areas could expertise delays, notably if the shutdown lasts longer than 5 enterprise days:

• Paper tax returns and correspondence could take longer to course of, particularly if IRS staff are furloughed.
• Sure taxpayer companies (like stay telephone help) could also be unavailable or have decreased hours or staffing that end in longer wait instances.
• Some tax-exempt group purposes might be delayed till the shutdown ends.
• Responses to audit inquiries might be delayed.

These impacts are usually short-term and will resolve as soon as authorities funding is restored.

What if I owe taxes?

In the event you filed an extension earlier this 12 months, you continue to have till Oct. 15 to file your tax return. Right here’s easy methods to keep on monitor:

1. File electronically (you’ll be able to e-file with TaxAct®) to make sure your return is processed sooner. That is particularly necessary throughout a authorities shutdown.
2. Use direct deposit to keep away from delays in receiving your tax refund.
3. Double-check every thing (together with deductions and tax credit) earlier than submitting.
4. In the event you owe earnings tax, pay by the tax deadline to keep away from penalties.

Even when some IRS staff are later furloughed, most digital programs proceed to function mechanically, permitting taxpayers to nonetheless submit, amend, or pay their tax returns. TaxAct can assist you with all of those!

If that you must attain the IRS throughout a authorities shutdown, remember the fact that response instances could also be longer than standard. Right here’s what to know:

• The IRS telephone traces could have restricted availability and lengthy wait instances.
• On-line instruments like The place’s My Refund?, transcript entry, and the IRS On-line Account stay out there.
• Taxpayer Help Facilities (TACs) is probably not out there or could function on decreased schedules, relying on staffing and native IRS operations.
• In the event you obtained an IRS discover, be sure to nonetheless observe the directions rigorously, even in the event you count on a delay in response.

What this implies for the common 2025 submitting season

The IRS presently expects no instant impression on the 2025 submitting season, however that would change if the federal authorities shutdown continues for a protracted interval. If that occurs, the IRS will present up to date steering to taxpayers and tax professionals.

In the meantime, members of Congress, together with each Democrats and Republicans, are persevering with negotiations to revive authorities funding for the present fiscal 12 months. If there are any necessary updates, we’ll add them to this web page.

FAQs

The underside line

A federal authorities shutdown can really feel unsettling, nevertheless it’s nonetheless necessary to file your taxes on time. The tax deadline for people with extensions remains to be Oct. 15. In the event you haven’t filed but, don’t wait till the final minute — submitting your tax return early can assist you keep away from any potential processing slowdowns and hold your tax refund on schedule.

This text is for informational functions solely and never authorized or monetary recommendation.

All TaxAct presents, services and products are topic to relevant phrases and situations.