Navigating the 2025 Government Shutdown: Tax Implications & Support from Peter Holtz CPA

Federal Government Shutdown Begins October 1, 2025

As of October 1, 2025, the federal government is experiencing a shutdown due to the expiration of the continuing resolution from the Full-Year Continuation Appropriations and Extensions Act, 2025. This is the first U.S. government shutdown since 2019.

Impact on 2024 Tax Filers

The current shutdown does not affect 2024 tax filers who have an extension deadline of October 15, 2025. On the eighth day of the shutdown, many IRS employees are in a non-pay, non-duty status until further notice. Despite roughly 34,000 IRS workers being furloughed, about 53.6% of the IRS workforce remains on the job. Regardless of furloughing or a government shutdown, this currently does not affect the 2024 tax filing. Please ensure that you submit all required documents on time to avoid penalties.

Essential Services Continue, SBA Operations Affected

Essential government services remain in place, including Medicare, Medicaid, the military, law enforcement, air traffic control, and the United States Postal Service. However, this shutdown has an ongoing impact on the Small Business Administration. A quarter of the SBA (Small Business Administration) staff is currently experiencing a furlough, while new 7(a) and 504 loans are suspended. This suggests that many businesses are unable to secure government funding to purchase property, equipment, or expand their operations.

What If You Still Owe Taxes?

So the big question is, what if you still owe taxes? Although workers may be furloughed, you should still submit electronic documents. Some suggestions for this would be to set up direct deposit to avoid delays in receiving tax returns, double-check deductions and tax credits before submission, and pay any due income tax to avoid further penalties.

How Peter Holtz CPA Can Help

Luckily, at Peter Holtz CPA, once we receive your documents, we help you avoid the work or stress of doing it altogether.

IRS Delays and Filing Season Outlook

While contacting the IRS during this time, due to staffing constraints, you can expect delays. The Taxpayer Assistance Center may experience delays. Despite any delays, this indicates that you must still respond to IRS notices and respond with care. Depending on the length of the government shutdown, it could have an impact on the filing season.

Stay Prepared and Submit Documents Promptly

We understand that this is a stressful time, so please ensure that you send your documents to us promptly, allowing us to file on time and address your tax needs.