Congress failed to reach an agreement on funding beginning October 1, 2025. Until further notice, the federal government is shut down.
Social Security Administration
During the federal government shutdown, payments to all people who currently receive Social Security benefits and Supplemental Security Income (SSI) will continue with no change in payment dates. You will still receive your payments on time.
Medicare and Medicaid will continue to operate uninterrupted.
Internal Revenue Service
IRS operations will continue normally for the first five business days of the shutdown,
Audits and taxpayer services will be paused, but revenue collections and installment plans will continue
Only efiled returns will be processed. Any mailed-in returns will be processed when the government reopens
Filing deadlines remain unchanged. Taxpayers who filed for an extension for their 2024 returns must still submit them by October 15, 2025, and tax-exempt organizations face a November 17, 2025 deadline. Taxpayers must continue to meet deadlines and make payments, even if IRS services are delayed or unavailable.
2026 Filing Season
The shutdown timing is critical for the IRS, which is actively preparing for the 2026 tax filing season. This year’s preparations are especially complex due to sweeping changes introduced by the new tax laws.
The legislation permanently implements many provisions of the 2017 Tax Cuts and Jobs Act, including the expanded standard deduction and revised tax brackets. It also introduces new deductions for tip income, overtime pay, and auto loan interest while repealing several clean energy credits.
Implementing these changes requires updated IRS guidance, revised forms, and reprogrammed systems, which could be delayed if the agency is forced to furlough staff. Any disruption now could ripple into the 2026 filing season, which may result in a delay for the opening of the filing season.
What Taxpayers Should Do
• Use electronic filing: E-filed returns are processed faster and are less likely to be affected by staffing shortages.
• Make payments on time: Even if the IRS is slow to process returns, penalties for late payments still apply.
• Document everything: Keep records of correspondence, payments, and filings in case of future disputes.
If you would like a consultation about how the furlough affects your finances or your tax return, feel free to call us at (631) 585-9698.