Keep your expectations low. In their defense, the reduction in the IRS’s workforce during 2025 is limiting the IRS’s capabilities, which in turn is creating uncertainty and frustration in getting issues resolved.
The Federal Government Shutdown Is Further Disrupting IRS Operations
Since January 2025, the IRS’s workforce has been reduced by approximately 25%. Nearly 11% of IRS employees were let go. Most of the remaining reductions can be attributed to voluntary separation programs and early retirement. The loss of so many employees so quickly is affecting IRS operations, resulting in slower processing, fewer audits, and greater workloads on those who remain.
The current Government shutdown is only making matters worse.
The Federal government’s fiscal year started October 1, 2025. However, Congress failed to appropriate funds for the operation of the government. Under U.S. law, government agencies “may not make, or authorize an expenditure or obligation” that has not otherwise been appropriated by Congress, “except for emergencies involving the safety of human life or the protection of property” 31 U.S.C. §§ 1341 and 1342. The term “emergencies involving the safety of human life or the protection of property” does not include ongoing, regular functions of government.
Most Government agencies have a plan for operations when funding lapses. Under the IRS’s Lapsed Appropriations Contingency Plan, nearly half of its employees have been furloughed. IRS’s operations since October 1 have been curtailed and will continue to be limited until the Government is fully funded.
Still Waiting on That Refund? Here’s Why.
If you are owed a refund for a prior tax year, you might not be receiving it for a while. Generally, the IRS is not paying refunds. However, if you, or your tax preparer, electronically filed your individual income tax return, it is error-free, the return can be automatically processed, and you requested direct deposit, there is a possibility that you will get your refund during the shutdown. If not, you will have to wait for the Government to fully reopen.
IRS Customer Service Limitations and Communication Challenges
Resolution of outstanding tax matters with the IRS is one of the areas in which taxpayers are most directly affected.
Although the phones are working, there are a limited number of live IRS telephone customer service assistants available. Included in those IRS employees let go this year, about 2,000 were people who answer the phones.
IRS walk-in Taxpayer Assistance Centers are now closed. Appointments will not resume until the government reopens. Even when the Government reopens, many of these Centers are slated for permanent closure.
The IRS is not responding to paper correspondence during the shutdown. If you mailed correspondence to the IRS this past month concerning a tax matter, don’t expect a response until well after IRS operations fully resume.
Taxpayers with matters before the IRS Independent Office of Appeals have been on hold since early October and will remain so during the remainder of the shutdown. Cases being handled by the Taxpayer Advocate Service are also on hold. Hearing and meeting are cancelled. IRS personnel will reschedule those meetings when the government reopens.
Preparing for the 2026 Tax Filing Season Amid Staffing Shortages
It’s now November 2025, and the 2026 tax filing season is rapidly approaching. Despite the reductions in employees and lapses in funding, the IRS must test its operations and filing season programs to be ready to accept 2025 tax returns in the very near future. This is all the more complicated for the upcoming filing season due to the recent tax law changes enacted under the One Big Beautiful Bill.
With all that being the case, taxpayers must continue to file and pay taxes as normal! All tax deadlines remain in effect!
We’re Here to Help You Navigate IRS and Tax Challenges
At McDowell Law Group, we understand that dealing with the IRS during this year of change can be frustrating. Despite the challenges at the IRS, our tax professionals remain steadfast in our approach resolving tax issues for our clients. If you need assistance with an IRS or state tax matter, contact the McDowell Law Group today to schedule a confidential consultation for guidance.