IRS Issues Plan for Operations During a Potential Government Shutdown

On Sept. 29, the IRS released their FY 2026 Lapsed Appropriations Contingency Plan in the event of a government shutdown. Of note, all IRS employees would continue working during a shutdown, effective for the first five business days of a lapse of appropriations. 

Government shutdowns cause significant harm to our tax administration system. On Sept. 29, the AICPA submitted a comment letter requesting that the IRS issue a plan allowing all IRS employees to continue working during a shutdown, or at least to retain more employees than in prior shutdowns. They also raised the impact that the 2019 shutdown had on the tax community, including: 

• Issuance of automated IRS collection notices without any ability to resolve
• Suspension of audit, examination, and appeals activities
• Challenges with online account access and electronic payments
• Substantial wait times when IRS phone services resumed