IRS Operations Suspended During Federal Funding Lapse

IRS Operations Suspended During Federal Funding Lapse

Notice to Clients — October 2025

As of October 8, 2025, the IRS has suspended most operations due to a lapse in federal appropriations. The majority of IRS employees have been placed on furlough, and only essential staff remain active to protect life, property, or manage shutdown procedures.

During this period:

• Most IRS services are unavailable. Expect significant delays in communication, processing, and case handling.

• Electronic filing systems remain open, but any action requiring staff review or response will be paused.

• Refunds, amended returns, and correspondence cases will experience extended processing times.

• IRS communications are on hold. No responses will be issued to notices or inquiries until funding is restored.

• Ongoing installment agreements and payment obligations remain in effect, even though enforcement actions are temporarily suspended.

Tax professionals and clients should prepare for slower response times and backlog accumulation once normal operations resume.

Pivotal Forensic Accounting & Audits advises clients to:

• Document all correspondence and submission dates carefully.

• Continue timely payments and filings to avoid future penalties.

• Plan for delays in transcript requests, case resolutions, and other manual processes.

The IRS has stated it will issue updates as the situation develops. We will continue to monitor official communications and provide updates to our clients as new information becomes available.