When people hear about a government shutdown, a common question immediately follows: What happens to the IRS? Taxes don’t take a break, but government operations sometimes do.

The truth is, even during a shutdown, some IRS functions keep running while others pause, leaving taxpayers in an uncertain spot. Understanding this distinction matters, especially if you’re waiting for a refund, facing an audit, or managing a tax dispute.

The IRS and the Shutdown Playbook

During a federal government shutdown, agencies must follow contingency plans that define which employees are “essential” and which are temporarily furloughed. The IRS is no exception. Although some operations halt, critical functions related to the protection of government assets and revenue continue.

While thousands of employees may be out of the office, the agency still performs certain core responsibilities—mainly those connected to revenue collection and public safety.

Functions That Continue During a Shutdown

a)      Processing of Tax Payments and Revenue Collection

The IRS must keep America’s revenue pipeline open. Tax payments, including withholdings and electronic deposits, continue to be processed. Systems remain operational because shutting them down could risk significant financial loss to the Treasury.

b)      Criminal Investigations and Law Enforcement

The IRS Criminal Investigation Division continues operating. Stopping tax fraud and financial crimes is considered essential to national financial security, so agents remain active even during a shutdown.

c)      Protecting Government Property and Data

Security of taxpayer records and IRS facilities does not pause. Employees deemed essential stay on to monitor and safeguard sensitive information, cybersecurity systems, and critical databases.

d)      Support for Ongoing Litigation and Statutory Deadlines

If a court or statute sets a deadline for a tax matter, designated personnel ensure compliance. Failure here could lead to legal jeopardy for the agency or compromise enforcement actions already in motion.

e)      Automated Services and Online Systems

Some IRS online tools—like “Where’s My Refund?” and account services—stay live. However, users should expect slower responses or delayed updates because fewer employees are available to maintain these systems.

What Stops During a Shutdown?

1)      Refund Processing (Mostly)

Traditionally, refunds get delayed. While electronic systems may receive and record returns, the actual issuance of refunds often pauses until operations resume fully.

2)      Audit Reviews and Collections Actions

Non-urgent audits, appeals, and collection activities are usually suspended. This temporary halt doesn’t erase obligations—it simply pushes timelines forward.

3)      Customer Service and Call Centers

One of the biggest impacts taxpayers feel is the silence of IRS phone lines. Most call center staff are furloughed, leaving limited access to human assistance.

4)      Walk-In Taxpayer Assistance Centers

Local offices are typically close to the public during shutdowns. Appointments, document submissions, or identity verifications get postponed.

Preparing for Interruptions

For individuals or businesses, the key is to stay proactive. File on time, keep records in order, and use online tools as much as possible. If you’re facing a pressing tax issue—like a pending audit or appeal—it’s wise to seek expert help early.

A reliable San Francisco tax attorney can provide guidance to protect your rights during uncertain periods. Similarly, an experienced IRS Tax Lawyer in San Rafael, CA can advise whether actions can or should proceed despite delays in federal processing.

Why Staying Informed Matters?

Shutdowns end eventually, but the tax clock rarely stops ticking. Statutory deadlines resume immediately after operations restart, sometimes catching taxpayers off guard. Knowing which functions paused—and which didn’t—helps avoid penalties, missed filings, or procedural surprises.

Understanding how the IRS prioritizes continuity during a shutdown underscores one truth: tax responsibility doesn’t pause with politics. Staying informed, vigilant, and legally supported ensures you navigate these gray areas confidently.