Government Shutdown Update – October 9, 2025
Congress has passed a short-term continuing resolution (CR) to fund the U.S. government through November 17, 2025, narrowly avoiding a shutdown. The CR maintains current funding levels and includes limited supplemental appropriations for disaster relief and support for federal firefighters.
While this measure temporarily averts disruption, the risk of a shutdown remains if lawmakers fail to reach a broader agreement before the new deadline. The House and Senate continue to negotiate FY 2026 appropriations, with several bills still pending.
Should a shutdown occur, federal agencies including the IRS would operate under contingency plans. These typically involve:
- Reduced staffing and limited services, especially in taxpayer assistance and enforcement.
- Delays in processing returns and issuing refunds, particularly for amended filings and correspondence.
- Suspension of non-essential operations, which may affect audits and compliance reviews.
The IRS has not yet released an updated contingency plan for FY 2026, but prior plans suggest that core functions like e-filing and automated systems would remain operational.
Planning Ahead
We recommend the following steps:
- Submit outstanding documentation early to avoid processing delays.
- Monitor IRS announcements for updates on service availability.
- Prepare for extended timelines on any pending matters, especially those involving correspondence or refund claims.