Small Business Taxes & Management
Special Report
IRS Shuts Down
Small Business Taxes & ManagementTM--Copyright 2025, A/N Group, Inc.
The IRS has officially begun shutting down. As of July 24, 2025 the IRS had some 74,300 employees. After the shutdown just under 40,000 (53.6%) will continue to be working. Residency certification will continue to issued Form 6166, Income Verification Express Service (IVES) and certain other essential functions will continue to operate. These services are financed by a resource other than annual appropriations.
The functions that will cease include:
- Processing Non-Disaster Relief transcripts
- Most Headquarters and administrative functions not related to the safety of life and protection of
property
- Non-automated collections
- Legal counsel re non-excepted activities
- axpayer services such as responding to taxpayer questions (call sites) (during Non-Filing
Season)
- Information systems functions (except as necessary to prevent loss of data in process and
revenue collections)
- Planning, research, training, and development activities (except as necessary to perform
excepted activities, e.g., filing season or needed to perform exempt activities)
Automated operations such as return filing will continue as will tax examinations, but many functions such as publishing revenue procedures, notices, etc. are likely to be very limited. Functions that will continue include:
- Completion and testing of the upcoming Filing Year programs.
- Processing Remittances including Payment Perfection
- Processing disaster Relief Transcripts
- Mail Processing (remittances, etc.)
- Continuing the IRS’ computer operations to prevent the loss of data.
- Protection of statute expiration, bankruptcy, liens, and seizure cases
- Upcoming Tax Year forms design and printing
- Protecting Federal lands, buildings, and other property owned by the United States
- Minimal building facilities personnel to maintain safe conditions for excepted personnel.
- Maintaining minimum staff necessary to perform accounting functions and to prevent the
loss of accounting data.
- Administering contracts related to safety of human life or protection of Government property.
- Maintaining criminal law enforcement and undercover operations
- Maintenance of existing On-line Applicant (OLA) applications and messaging updates
Bottom line? You still have to file on time. And if you're filing anything by paper, you should be aware a record is kept of the postmark.
Click to see the full Contingency Plan.
Copyright 2025 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject. Copyright is not claimed on material from U.S. Government sources.--ISSN 1089-1536
--Last Update 10/09/25