Extended Filing Due Date Approaches for 2024 Individual Income and Gift Tax Returns
As the Oct. 15, extension deadline looms for filing 2024 individual income and gift tax returns, what does the federal government shutdown mean for Internal Revenue Service employees and individual taxpayers?
Will IRS employees work during the shutdown?
Based upon historical government shutdowns, approximately 74,000 exempt employees are covered under the Inflation Reduction Act of 2022 (IRA), which provides some supplemental appropriations for the IRS during periods of shutdown.
Under the IRS Fiscal Year 2026 Lapsed Appropriations Contingency Plan (Version 2 of this plan was issued on Sept. 29, 2025), appropriations for these exempt employees will be available for a period of five days. After the five-day window of appropriations expires, the IRS will reassess its activities and may furlough non-essential personnel. However, exempt employees deemed crucial for public safety, property protection, or other essential services will likely continue working without pay until the lapse ends.
Unlike other government agencies that must furlough most of their staff and retain only a small “exempted” crew, the IRS has not had to release a public list of which jobs would be deemed essential. This is because IRA funding covered the entire workforce for the initial period. If the shutdown continues beyond Oct. 5, it is unclear whether their exemption will continue. The IRS will have to reassess its ongoing activities and identify necessary adjustments for exempted positions and personnel.
What if I need to file taxes on or before Oct. 15?
What does that mean for taxpayers filing their 2024 tax returns during an extended shutdown period? If you are filing your returns electronically, acceptance of the filings should remain unaffected.
If non-essential employees are furloughed, services, including paper processing of tax returns, will be severely impacted. Services such as processing non-automated collections, refunds, and responding to taxpayer questions may be impacted, as well. In general delays are expected.
In a letter to the IRS, the AICPA noted that while it remains unclear as to how long the shutdown may last, it could also delay the 2025 tax filing season that normally would start in mid-January and the issuance of guidance for H.R. 1 P.L. 119-21, commonly known as the One Big Beautiful Act.
