An updated Internal Revenue Service contingency plan will keep nearly 40,000 employees working during a federal shutdown, maintaining core taxpayer support as filing season approaches. The plan retains more than half of the workforce, including more than 24,000 employees in Taxpayer Services, to limit disruptions for filers and tax professionals.
Accounting leaders urged the agency to go further to shield taxpayers from disruptions. The American Institute of CPAs called for targeted relief and clearer guidance during the outage.
What the Plan Covers
The updated plan prioritizes services that affect the largest number of taxpayers. It aims to keep phone lines, processing systems, and key digital tools running so that returns can be filed and questions answered.
“Under an updated contingency plan, nearly 40,000 of the approximately 74,000 IRS workers will stay on the job, including more than 24,000 in Taxpayer Services.”
That staffing level suggests the IRS expects heavy demand and wants to prevent backlogs. It also signals that customer support will remain a focus even with reduced operations.
Relief Sought by the Accounting Profession
Tax practitioners are asking for practical adjustments to help clients who face delays or limited access to agency staff. The AICPA urged the government to ease deadlines and penalties during the shutdown period.
The group recommended “fair, reasonable, and practical relief measures to mitigate the negative impact of the shutdown” on taxpayers and practitioners.
Such steps could include extra time to respond to notices, flexibility on document requests, and penalty relief when delays stem from limited IRS availability.
Impact on Taxpayers and Practitioners
Even with 40,000 employees on duty, some functions may slow. Mail processing, correspondence responses, and case resolution often suffer in a shutdown. Many taxpayers rely on phone support and online accounts, which are expected to keep operating under the plan.
- Taxpayer Services will have more than 24,000 staff to handle calls and questions.
- Electronic filing systems are likely to remain available.
- Some compliance and exam actions could be delayed.
- Response times for written correspondence may lengthen.
Tax preparers say clarity is just as important as staffing. Clear guidance on deadlines, notices, and penalty relief helps clients plan and reduces unnecessary calls and appeals.
Lessons From Past Shutdowns
Previous shutdowns have shown that early planning helps prevent logjams once operations resume. When notices pile up and mail sits unopened, taxpayers face long waits for basic answers. The agency has used contingency plans before to keep core systems functioning, but restoring full capacity can take weeks.
Keeping more than half the workforce active this time could soften the usual surge of delayed cases. Still, practitioners warn that even small delays compound during peak filing periods.
What to Watch Next
Key questions remain about how flexible the IRS will be on deadlines and penalties. Practitioners want clear, written relief policies that apply across offices and cases. They also want confirmation on which services will be prioritized if staffing levels shift.
Taxpayers should monitor official IRS updates and rely on electronic services when possible. They should document all delays tied to the shutdown, in case relief options become available later.
Outlook
The contingency plan reflects a push to keep taxpayer support steady, even with reduced staff. The accounting profession’s call for targeted relief adds pressure for clear rules and consistent treatment. If the agency provides flexible deadlines and penalty relief, many disruptions can be avoided.
For now, the message is mixed: vital services will continue, but patience will be required. The balance between keeping systems running and offering broad relief will shape the filing season ahead.
