Overview
- Experts say it will take weeks, and likely months, for the IRS to return to full operations after the lapse in funding hit just before the Oct. 15 extension deadline.
- More than 30,000 IRS employees were furloughed, leaving just over half the workforce active and sharply reducing phone support and walk‑in assistance, including the Taxpayer Advocate Service.
- Electronically filed returns continued to be processed and refunds issued under the IRS contingency plan, but paper filings, correspondence, and cases needing manual review face months‑long delays.
- Computer‑generated notices about balances due and penalties were issued without human review, and some tax preparers advise paying small amounts to halt accruing charges while disputing later.
- Work on 2026 filing‑season preparations and regulations to implement the 2025 One Big Beautiful Bill Act was paused, leaving tax professionals without needed guidance.