The Treasury Department has released a contingency plan in anticipation of a government shutdown, which is likely to occur over the weekend.
The plan includes provisions for the IRS, with most core tax administration functions expected to stop. The IRS will furlough approximately two-thirds of its employees, or about 60,000 staff, resulting in significant impacts on taxpayers.
Taxpayer phone calls to the IRS will go unanswered, and Taxpayer Assistance Centers across the country will close. The agency will not process tax refunds unless returns are electronically filed and error-free.
The IRS will continue activities funded with Inflation Reduction Act resources and preparations for the upcoming filing season. However, the agency will delay certain programs and awards, affecting economic opportunity in distressed communities.
The IRS will still process transcript requests following disasters and provide income verification to mortgage lenders and banks. The agency's critical IT system functions necessary to protect taxpayer data will also continue. Read more.