Yesterday the IRS released their FY 2026 Lapsed Appropriations Contingency Plan in the event of a government shutdown. Of note, all IRS employees would continue working during a shutdown, effective for the first five business days of a lapse of appropriations.

As we have experienced in prior years, government shutdowns cause significant harm to our tax administration system. This morning, the AICPA submitted a comment letter requesting that the IRS issue a plan allowing all IRS employees to continue working during a shutdown, or at least to retain more employees than in prior shutdowns. We also raised the impact that the 2019 shutdown had on the tax community, including:

• Issuance of automated IRS collection notices without any ability to resolve
• Suspension of audit, examination, and appeals activities
• Challenges with online account access and electronic payments
• Substantial wait times when IRS phone services resumed

You can learn more about the AICPA’s comment letter in their press release. If you have any questions, please contact Vice President of Tax Policy & Advocacy Melanie Lauridsen.