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Government Shutdown: What Taxpayers Need to Know and How to Stay Ahead
As the federal government shutdown stretches into its third week, we know many of you are feeling its impact—whether you’re waiting on a refund, trying to reach the IRS, or simply looking to keep your business moving forward.
At Maner Costerisan, we understand that uncertainty creates stress—and we’re here to help you cut through the noise, stay compliant, and make informed decisions with confidence. Here’s what’s currently happening, what it means for you, and how we’re supporting our clients through it all.
What’s Still Working at the IRS
While nearly half of the IRS workforce has been furloughed, some essential operations are still running:- Electronic filing remains open for individuals and businesses.
- Direct deposit refunds are still being processed.
- Online payment portals continue to function.
- Critical operations like IT systems and criminal investigations are active.
Where You’ll See Delays
Not everything is business as usual. Several taxpayer-facing services are slowed or paused:- IRS phone lines: Most are inactive or have long wait times.
- Paper return processing: Expect significant delays.
- Audits, appeals & examinations: These activities are on hold.
- Collections enforcement: Paused, though automated notices may still arrive.
- Taxpayer Advocate Service: Temporarily closed.
What The Shutdown Means for You
Even during a shutdown, tax responsibilities don’t pause, and penalties and interest will continue to accrue on outstanding liabilities with the IRS. Here’s a quick overview:| Area | Current Status | Our Recommendation |
| Filing deadlines | All deadlines remain active. | File Electronically and on time. |
| Refunds | E-filed/direct deposit refunds are being processed. | Use e-file and direct deposit when possible |
| IRS correspondence | Replies will be delayed. | Keep thorough records of correspondence sent, including delivery confirmations. |
| Audits/notices | May be delayed but not canceled. | Respond Promptly and contact us for support. |
| Business tax compliance | No changes to deadlines. | Stay current with payroll, sales, and employment tax filings. |
Looking Ahead: What to Expect
If the shutdown continues, we’re likely to see:- Increasing backlogs in paper return and amendment processing.
- Delays in new IRS guidance and digital tool rollouts.
- Slower release of federal economic data, which may influence tax and financial policy.
- Potential permanent staff reductions at the IRS, impacting service levels long-term.
What’s Clear:
Delays are real, but obligations persist. Being proactive now can prevent bigger headaches later.How Maner Costerisan Is Here for You
Our team is keeping a close eye on the latest developments, and we’re here to help you:- Review and respond to IRS correspondence—even during delayed processing.
- Prioritize electronic options to keep your filings and payments on track.
- Anticipate issues with audits, appeals, or delayed refunds—and develop contingency plans.
- Stay current on emerging guidance, so you’re never caught off guard.
The materials provided in the News & Insights section are for general informational purposes only and may not reflect the most current legal, tax, or financial developments. While we strive to ensure accuracy at the time of publication, Maner Costerisan does not guarantee that the information remains up-to-date or free from error. We recommend consulting directly with a Maner Costerisan team member to confirm the applicability and relevance of any information to your specific situation.
