The IRS furloughed nearly half its workforce on October 8, and the agency has shut down most taxpayer services indefinitely. If you have an extended return due this week on October 15, or if you’re planning ahead for next year’s filing season, here’s what you need to know and why working with an experienced preparer has never been more critical.
Your Deadline Hasn’t Changed
Let me be clear about the most important point: the October 15 extension deadline for your 2024 business and personal returns remains in effect. The government shutdown does not postpone your filing obligation. If you secured an extension and haven’t filed yet, you must submit your returns by Wednesday to avoid penalties and interest charges that can add up quickly for business owners. Most taxpayers don’t realize that payments were due with the original returns in April, and penalties and interest for non-payment have already begun to accrue. But late filing can continue adding to that bill.
The IRS Can’t Help You Right Now
Here’s where things get complicated. With 34,000 of the IRS’s 74,000 employees furloughed, virtually all taxpayer services have shut down. That means if we encounter a technical question about your return, there’s no one at the IRS for you or us to call. If you need a transcript for a loan application or other business purpose, we can’t get it unless you qualify for disaster relief. That means mortgage approvals can be stalled for a significant length of time. The Taxpayer Advocate Service, which normally helps resolve problems, has closed completely. We frequently refer clients here for complex issues that require assistance from a case manager.
For small business owners, this creates real challenges. Perhaps you’re refinancing business debt and need tax documentation. Maybe you’re applying for an SBA loan, and the lender requires verification. Or you might be dealing with a notice that arrived before the shutdown. All of these situations that would normally involve IRS contact are now in limbo with no clear timeline for resolution.
Why Your Preparer Matters More During a Crisis
This is exactly when the difference between working with a qualified, experienced tax professional versus a seasonal preparer or DIY software becomes apparent. When the IRS isn’t available to answer questions, you need a preparer who already knows the tax code, understands small business issues, and can navigate complex situations without government support. When the IRS can’t provide guidance, that professional knowledge and network becomes your lifeline. A preparer who only handles simple returns or relies heavily on IRS support to resolve issues simply can’t serve you effectively right now.
What This Means for Your Business Going Forward
Beyond this week’s deadline, the shutdown creates a cascade of problems heading into next year. Every day the IRS remains partially closed, backlogs grow larger. Non-automated collections and audits are suspended, transcript processing has stopped, and thousands of employees aren’t working on the infrastructure that supports tax season.
The IRS was already behind before this shutdown, struggling with modernization efforts and implementing new tax legislation. When operations resume, the agency will face compressed timelines, massive backlogs, and a workforce trying to catch up on weeks of missed work—all heading straight into the 2026 filing season.
For your business, this means you should expect significant delays for anything requiring IRS involvement in the coming months. Amended returns, correspondence, transcript requests, and payment plan negotiations—all will take longer than normal.
Moving Forward Together
The government may have shut down, but your tax obligations haven’t. That’s why having the right preparer in your corner matters now more than ever. Our practice is dedicated to helping you stay compliant. That’s why things like verifying EINs and entity structures, properly filing timely extensions, electronic filing, and direct deposit are all so critical. What’s more is that you need a preparer dedicated to resolving issues and handling notices that will inevitably come in the mail, especially when you can’t call the IRS. Now is the worst possible time to continue working with tax preparers who weren’t answering your calls before. Not having the right professional in your corner isn’t just costing your business time trying to resolve issues; it’s costing you money that could be reinvested into your growth.
Our firm typically closes our tax season client list in late October/early November. Now is the time to book a discovery call to be added to our tax season list.
Christine Gervais
Christine Gervais is a licensed CPA, using her skills to help businesses grow and achieve their fullest potential. Christine has a Master’s degree in accounting from Southern New Hampshire University in addition to holding her CPA license for over a decade. Notably, Christine is a nationally recognized speaker providing education to other CPAs on how to best serve clients as well as instruction on a wide variety of topics for business owners on how to maximize success. Christine prides herself on the value she can bring to clients with her extensive tax knowledge and provides strategic, forward-thinking financial strategies to help clients grow. When not behind her desk, you can find Christine spending quality time with her daughter and stepson or tending to the family’s excessively loved farm animals.
