IRS Operations During the Lapse in Appropriations

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Tax Practice News

Tax professionals should be aware of the following during the current lapse in appropriations due to limited IRS operations:

  • Tax refunds. Generally, the IRS will not pay refunds. One key exception exists: the IRS will continue to pay individual refunds for your clients who requested direct deposit on their Forms 1040 if the client electronically filed the tax returns, the returns are error-free, and the returns can be automatically processed. The IRS urges tax professionals to electronically file their clients’ returns with direct deposit to avoid delays.
  • Payments. The IRS will accept and process any payments and remittances received, whether received electronically or by mail.
  • Correspondence. The IRS generally will not be responding to paper correspondence. Tax professionals who mail in correspondence to the IRS during this period should expect a delay for a response after full government operations resume due to a growing correspondence backlog.
  • Telephones. Only limited live IRS telephone customer service assistance will be available; however, most automated toll-free telephone applications will remain operational.
  • Taxpayer appointments. The IRS’s walk-in Taxpayer Assistance Centers (TACs) are closed. Appointments are cancelled until the government reopens. Likewise, appointments related to the Independent Office of Appeals or Taxpayer Advocate Service cases are cancelled. IRS personnel will reschedule those meetings when the government reopens.
  • Transcripts. Tax professionals needing historical filing information can use automated tools to request tax transcripts. In addition, the IRS will process transcript requests related to disaster relief.
  • Income verification. The IRS Income Verification Express Service (IVES) will remain available.
  • Tax-exempt groups. The IRS will not process applications or determinations for tax-exempt status or pension plans.
  • Enforcement activity. Criminal Investigation work continues during this period, as does compliance work related to protecting statutes of limitations.
  • 2026 filing season. The IRS will continue some critical operations during this period to be ready for tax professionals and their clients. These critical operations include testing and preparation of filing season programs and related issues.

Tax professionals and their clients should continue using the tools on IRS.gov, including Tax Pro Account, online account for individuals and Business Tax Account. The following resources can help tax professionals market and set up IRS online accounts:

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