How the IRS Is Operating During the 2025 Government Shutdown
As of October 9, 2025, the government shutdown has entered its second week, and the IRS has begun scaling back operations.
While the agency initially remained fully open under its Lapsed Appropriations Contingency Plan, it is now furloughing nearly half of its workforce, about 34,000 employees. Special funding from the Inflation Reduction Act continues to support certain departments, allowing critical operations to stay active, but the IRS is now functioning at a reduced capacity.
The IRS is not closed, but it is operating with fewer staff and limited public services. Here is what that means for taxpayers.
Why the IRS Stayed Open at First
When the shutdown began, the IRS was able to continue operating because of multi-year funding provided through the Inflation Reduction Act. That funding, which lasts through 2031, gave the agency the ability to keep more than 74,000 employees on duty during the first several business days of the shutdown.
That temporary continuation period has now ended, and the Treasury Department has begun implementing furloughs for staff whose work is not considered legally exempt under federal law.
What Is Changing Now
Reports show that about 53 percent of IRS employees remain on duty. These employees are focused on maintaining critical functions that protect taxpayer data and government revenue.
Active departments include those responsible for processing returns and payments, maintaining information security systems, continuing enforcement and investigations, and providing limited assistance through the Taxpayer Advocate Service.
Other areas such as administrative functions, call centers, and correspondence support are temporarily reduced or paused.
Taxpayers should expect longer response times and possible delays for these services.
What This Means for Taxpayers
Even with reduced staffing, the IRS continues to process payments and filings. Penalties and interest on unpaid balances still accrue, and tax obligations remain in effect.
Taxpayers with active resolution cases may notice slower communication, but enforcement activities are not completely paused. Once funding is restored and full operations resume, enforcement efforts are expected to accelerate.
The Bottom Line
The IRS is not fully shut down, but it is operating at about half strength as the government shutdown continues. Core functions such as payment processing, return handling, and enforcement remain active, but many public-facing services are delayed.
For taxpayers, this is the time to stay proactive.
Understanding what continues and what is temporarily on hold can help avoid surprises when the government reopens and the IRS returns to full capacity.
At Golden Lion Tax Solutions, we believe there’s always a solution.
Even during a government shutdown, the path toward tax relief doesn’t stop. If you’re facing IRS challenges or waiting on a resolution, now is the time to keep moving forward with expert guidance and a clear plan for success.
Take the first step toward relief. Let’s find your solution together.