CPAs Call on IRS to Grant Taxpayer Relief During Government Shutdown

As the U.S. government shutdown continues to disrupt federal operations, the Internal Revenue Service (IRS) has been forced to furlough nearly half of its workforce. This reduction has slowed tax processing, audits, and taxpayer communications across the country.

Now, Certified Public Accountants (CPAs) and tax professionals are urging the IRS to grant administrative relief such as penalty waivers and filing extensions to ease the pressure on taxpayers and businesses affected by the agency’s limited capacity.

What Happened

According to a report released by Thomson Reuters Tax & Accounting News, CPAs across the country are pressing the IRS to temporarily suspend penalties and adjust filing deadlines during the shutdown period.

With thousands of employees furloughed, the IRS has drastically reduced its ability to process correspondence, handle appeals, and conduct compliance reviews. Despite these operational limits, key filing and payment deadlines remain unchanged.

Professional bodies, including the American Institute of CPAs (AICPA), have formally requested that the IRS issue public guidance granting reasonable relief to taxpayers who face delays or barriers caused by the shutdown.

Why It Matters

The situation creates a difficult environment for compliance, particularly for small businesses and self-employed individuals who rely on timely IRS processing.

• Filing deadlines remain active. The October 15 deadline for extended tax returns is still in force.

• Response times are increasing. Taxpayers who attempt to reach the IRS are encountering long delays or no response at all.

• Penalty exposure is growing. Without official relief, taxpayers risk late filing and late payment penalties for reasons beyond their control.

For CPAs and tax attorneys, these operational challenges complicate year-end planning and client advisory services. Many are encouraging clients to document all interactions and delays related to the shutdown to support potential penalty abatement requests later.

Industry Response

Across the accounting profession, there is a growing consensus that the IRS should not penalize taxpayers when its own operations are suspended.

“When the IRS cannot operate at full capacity, it is only fair to pause enforcement and penalty assessments,” said a CPA based in Washington, D.C. “Taxpayers should not be punished for circumstances outside their control.”

Advocacy groups such as the AICPA have also called on the Treasury Department to authorize flexible administrative measures until the IRS resumes normal operations. The focus is on fairness, transparency, and maintaining taxpayer trust during a period of uncertainty.

What’s Next

If the shutdown continues, the IRS is expected to issue interim guidance to help taxpayers and practitioners navigate compliance. In the meantime, tax professionals recommend:

• Filing and paying on time whenever possible

• Keeping detailed records of how the shutdown affected filings or payments

• Monitoring updates from the IRS and professional associations

The IRS Newsroom and Treasury Department websites will remain key sources for any official announcements regarding filing extensions, penalty relief, or service restoration.

Conclusion

The federal government shutdown has placed the IRS under severe operational strain, yet taxpayer deadlines and penalties remain unchanged. CPAs and tax advocates are urging the agency to take a balanced approach by granting relief to those affected.

As the situation evolves, timely communication from the IRS will be essential to help taxpayers and professionals maintain compliance and confidence in the tax system.

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