As the federal government shutdown entered its second week, taxpayers across the country faced a new wave of confusion and frustration, especially in places like Missoula, Montana, where the local IRS taxpayer assistance office abruptly closed its doors on October 8, 2025. The closure was a direct result of the Internal Revenue Service (IRS) initiating widespread furloughs, slashing its workforce by nearly half just days before the crucial October 15 tax filing extension deadline.
According to the Missoula Current, the sudden shuttering of the Palmer Street IRS office caught many by surprise. One local customer shared, “They called me this morning and said the shutdown had closed their office. We are having a local taxpayer assistance center shutdown due to what's happening in Washington, D.C.” The sentiment was echoed nationwide as the IRS’s decision to furlough approximately 34,400 of its 74,299 employees—about 46%—sparked what national outlets described as “chaos and confusion” among both employees and taxpayers.
The shutdown, which began on October 1, 2025, after a budget impasse between congressional Republicans and Democrats, left the IRS in a precarious position. While the agency kept all employees working for the first five business days, the furloughs took effect on October 8, just as the Oct. 15 tax filing extension deadline loomed. For many taxpayers who requested an automatic six-month extension back in April, this deadline remains unchanged despite the turmoil.
Tax experts are unanimous in their advice: file on time, shutdown or not. “There is no furlough in the filing deadline,” said Tom O’Saben, director of tax content and government relations for the National Association of Tax Professionals, as reported by Detroit Free Press. “If you miss the required Oct. 15 deadline, you could trigger a failure to file penalty and any interest charges on outstanding tax liabilities owed.” The extension, O’Saben stressed, gave filers more time to submit paperwork, not to pay taxes owed. Those payments were still due on April 15, 2025, and any delay now could result in penalties and interest.
With nearly half the IRS workforce sidelined, the agency’s ability to process returns, answer questions, and issue refunds has been severely hampered. Maria Ramos, a chapter president with the National Treasury Employees Union, told CNN, “Tax returns will be arriving, but there will be no one there to process them.” Doreen Greenwald, the national president of the same union, issued a stark warning: taxpayers can “expect increased wait times, backlogs and delays implementing tax law changes as the shutdown continues.”
Despite these setbacks, essential IRS staff—those not subject to furlough—continue to process returns and maintain core operations. The IRS contingency plan identifies about 39,870 employees, or 53.6% of its workforce, as exempt from the cuts. Still, the agency cautions that every day employees are locked out of work is “another day of frustration for taxpayers and a growing backlog of work that sits and waits for the shutdown to end,” as Greenwald noted.
For those hoping for a reprieve, experts like Matt Hetherwick, chief program officer for the Accounting Aid Society in Detroit, are clear: “Tax laws are not delayed due to the federal government shutdown, which means the IRS is required to continue to collect any taxes due.” Lisa Greene-Lewis, a CPA and spokesperson for TurboTax, added, “The deadline is still Oct. 15 unless you were impacted by a federally declared disaster and live in a location that received a further extension.”
Given the limited staff and mounting backlogs, taxpayers are strongly advised to file electronically and opt for direct deposit if they are expecting a refund. “Someone who files a paper return should be prepared for processing delays and a longer wait time if they are expecting a refund,” said Mark Steber, chief tax officer for Jackson Hewitt Tax Services. Electronic filings are still being processed, and the IRS’s computer systems remain operational, but paper returns may languish for weeks—if not longer—before being addressed. Refunds issued via direct deposit typically arrive within 21 days, while those awaiting paper checks could be left waiting six to eight weeks.
George Smith, a CPA with Andrews Hooper Pavlik in Bloomfield Hills, warned of additional risks for those still relying on traditional mail. “If someone owes money and sends the payment via check through the mail, there could be a problem proving the IRS received it on time if that issue arises,” Smith said. He recommends using certified mail for any documents sent to the IRS to ensure proof of mailing, especially as uncertainty over government services continues.
For taxpayers checking the status of their refunds, the IRS’s “Where’s My Refund” online tool remains a vital resource. According to Mid-Atlantic Connect Team reporter Maria Francis, the tool updates daily and allows users to track their refund within 24 hours of e-filing. Taxpayers can also call the IRS at 800-829-1954 for updates, though reaching a live representative may prove difficult during the shutdown.
Beyond the immediate chaos, the shutdown’s ripple effects threaten to complicate the upcoming 2026 tax season. The IRS faces a daunting list of new provisions to implement, including tax breaks for tips, overtime, car loan interest, and a new deduction for those age 65 and older who qualify. Melanie Lauridsen, vice president of tax policy and advocacy at the American Institute of CPAs, expressed concern: “Any shutdown can create greater backlogs for the IRS and hardships for taxpayers and practitioners.”
As if the filing hurdles weren’t enough, taxpayers are also being warned about a surge in scams exploiting the confusion. The Michigan Department of Treasury has already flagged scam text messages falsely claiming to be from Treasury, seeking bank account information under the guise of refund processing. Experts urge taxpayers to remain vigilant and avoid sharing sensitive data in response to unsolicited messages or calls.
Politics, as always, plays a central role in the ongoing shutdown. The latest impasse arose after Democrats blocked a Republican proposal to maintain government funding through November 21, leading to what is now the 11th government shutdown since 1980. While the IRS is not fully shuttered, the partial closure has left many Americans wondering how to navigate the system at one of the most critical times of the tax year.
Garrett Watson, director of policy analysis at the nonpartisan Tax Foundation, summed up the prevailing mood: “There’s not a lot taxpayers can do to mitigate this challenge, but submitting items on time and continuing with their side of the work would be best practice.” For now, the message is clear—despite the shutdown, the clock is ticking. File your returns, pay what you owe, and brace for delays as the IRS works through one of its most challenging periods in recent memory.