Shutdown Strategy: Protecting Yourself During the IRS Slowdown
The government shutdown has left many taxpayers waiting for the IRS to resume normal operations, but waiting does not have to mean standing still. Even though IRS staff are limited, deadlines for taxpayers remain in effect, and there are several steps individuals and businesses can take to stay protected during the slowdown.
The first priority is to continue meeting all filing and response deadlines. Although most IRS personnel are unavailable to review submissions, taxpayers must still file protests, appeals, and responses on time. Sending materials by certified mail or using secure electronic portals helps ensure proof of timely compliance once the government reopens.
This period also provides an opportunity to get organized. Businesses waiting on Employee Retention Credit or Research and Development Credit processing can use the downtime to strengthen documentation, gather payroll data, and review eligibility support. Individuals dealing with collection activity or penalty notices can prepare updated financial statements, payment records, and correspondence logs to be ready when contact resumes.
It is equally important to use this time to review broader year-end planning goals. Refund delays and communication gaps can affect cash flow, so taxpayers should assess estimated payments, consider available deductions, and identify credit opportunities before December 31. Business owners may also want to update depreciation schedules, confirm information reporting accuracy, and ensure their records are ready for the 2025 filing season.
When the shutdown ends, the IRS will begin clearing its backlog and resuming enforcement actions. Taxpayers who are already organized will be able to resolve matters more efficiently and with less stress. Strategic Tax Planning continues to track IRS updates and assist clients with open examinations, appeals, and collection matters.
Our team can help you create a tailored plan to maintain compliance, manage documentation, and position yourself for a smooth transition once the IRS is fully operational again. Acting now can make a measurable difference when normal activity resumes. Contact our team at (202) 455-6010 or schedule a confidential consultation today.
