AICPA calls for all IRS employees to keep working during shutdown

The American Institute of CPAs is urging the federal government to keep all Internal Revenue Service employees working for the duration of the shutdown, pointing to the approaching Oct. 15 deadline for filing C corporation tax returns and for individuals who requested a six-month extension back in April. 

On Monday, the Treasury Department posted a contingency plan for the IRS in the event of a lapse in appropriations, drawing on funding from the Inflation Reduction Act of 2022 to keep all employees working. On Friday, the AICPA renewed its call to allow 100% of IRS employees to work for the duration of the shutdown, even beyond the five days already authorized in the agency's contingency plan.

The AICPA believes the consequences of a drastically smaller workforce during a tax filing deadline and immediately preceding the start of next year's tax filing season would be dire. It pointed out that the One Big Beautiful Bill Act requires more guidance to ensure compliance with its provisions. Without a full staff at the IRS, the guidance could be delayed, as occurred during previous government shutdowns. That could lead to confusion and extra stress on taxpayers, tax practitioners and the IRS. 

"Right now, taxpayers, C-corporations and tax advisors are working hard to meet the October 15th filing deadline — this can be stressful enough," said Melanie Lauridsen, vice president of tax policy and advocacy with the AICPA, in a statement. "An extended government shutdown during this important filing deadline will compound this anxiety if the IRS is not 100 percent staffed." 

In a recent letter, the AICPA recalled the significant stress on the tax system produced by the 35-day government shutdown during the winter of 2018-2019, including: 

• Taxpayers continued to receive automated IRS collection notices, notices of intent to levy, and warnings of asset seizures with no means for resolution.
• With audit, examination, and appeals activities suspended, taxpayers could not resolve disputes and to stop penalties and interest from accruing.
• Taxpayers and tax practitioners experienced unreliable online account access, uneven ability to make electronic payments, and an inability to process critical tax documents.
• Taxpayers and tax professionals could not help identity theft victims or address hardship issues when the IRS phone lines weren't operating, and the IRS phone lines experienced significantly heavier call volume and, therefore, longer wait times upon resumption of operations.

"An extended shutdown could potentially impact the start of the 2026 filing season, which would be detrimental to the government's ability to collect revenue and issue critical guidance on the new tax law," Lauridsen stated. "Even a partial shutdown of the IRS for an extended period is deeply concerning, and we urge the IRS to retain its full staff until the shutdown is over."