What’s Happening with the IRS During the Government Shutdown

The ongoing federal government shutdown has caused major slowdowns across several federal agencies — and the Internal Revenue Service (IRS) is no exception.

As of October 2025:
– Nearly half of IRS employees are furloughed, leaving only “essential” staff working.
– Core services such as taxpayer assistance, Offer in Compromise reviews, and lien or levy releases are either delayed or paused.
– Even with limited staffing, tax deadlines and payment obligations still apply.

In short: the IRS isn’t fully closed, but it’s moving much slower — especially for taxpayers waiting on tax resolution case updates.

Why the Shutdown Matters for Tax Resolution Cases

1. Delayed IRS Processing and Response Times

Expect longer wait times for case reviews, correspondence, and decisions.
– Offers in Compromise (OIC) and Installment Agreement applications may sit in backlog for weeks.
– IRS representatives handling tax resolution cases are often among the furloughed employees.
– If you’ve already submitted paperwork, be patient — but stay proactive.

2. IRS Enforcement Still Continues

Even though many IRS employees are out, collections don’t fully stop.
– Penalties, interest, and liens can still accrue.
– Existing wage or bank levies may remain active until officially released.
– Because staff is limited, reversing or lifting these actions can take much longer than usual.

Tip: Stay compliant with any existing payment agreements to avoid new enforcement actions during the shutdown.

3. Deadlines Remain the Same

Shutdown or not, the IRS expects you to:
– File returns on time.
– Pay balances due or make payments as agreed.
– Respond to IRS notices within required timeframes.

Missed deadlines can lead to additional penalties and interest — even if IRS staff isn’t available to answer calls.

4. Strategic Adjustments May Be Needed

With slower response times, it’s critical to get ahead of the backlog. Start preparing or submitting your documentation now, so you’re ready when the IRS resumes full operations. If you’re unsure how to proceed, a local tax professional can guide you through the timing and paperwork.

What You Can Do Right Now

•  Stay in touch with your tax professional.
• File missing returns immediately.
• Keep documentation current.
• Plan for extended timelines.
• Act now instead of waiting.

Why Hawaii Taxpayers Should Work with Kokua Tax

Kokua Tax is based right here in Hawaii, not on the mainland. That means:
– You’ll work directly with local professionals who understand both federal and Hawaii State tax systems.
– We can meet in person or over video, depending on your island and schedule.
– We take care of all communication with the IRS, keeping you informed every step of the way.

Our team has helped countless Hawaii residents resolve IRS issues — even through past shutdowns and slowdowns.

Schedule Your Free Consultation

Don’t wait for the government to reopen to start fixing your tax problems. Let Kokua Tax guide you through your options today.