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Despite the government shutdown, the Oct. 15 federal tax extension deadline is fast approaching for many filers.
The process could be harder for some taxpayers after the IRS furloughed nearly half of its workforce —about 34,000 employees — earlier this week, experts say.
“It’s going to be a long haul if you need any kind of specialized customer experience,” said Jennifer MacMillan, president of the National Association of Enrolled Agents, whose members are tax professionals licensed by the IRS.
The original tax deadline was April 15. If you couldn’t meet that due date, you could submit Form 4868 for a six-month extension to file. But your tax payment was still due on April 15.
During fiscal 2024, the IRS received more than 20 million tax extension forms, according to the latest agency projections. For 2025, it expects that number to be around 19.8 million.
Some taxpayers impacted by natural disasters automatically have even more time to file beyond Oct. 15.
If you missed the April 15 tax deadline, the late payment penalty is 0.5% of your unpaid balance per month or partial month, capped at 25%. You will also incur interest on unpaid taxes.
By comparison, the failure-to-file penalty is 5% of unpaid taxes per month or partial month, up to 25%. If you filed for an extension, this kicks in after Oct. 15.
‘Expect increased wait times’
Filers can “expect increased wait times, backlogs and delays implementing tax law changes as the shutdown continues,” the National Treasury Employees Union said in a statement Wednesday.
“Taxpayers around the country will now have a much harder time getting the assistance they need, just as they get ready to file their extension returns due next week,” the organization said.
However, some customer service representatives remain at work, according to a 2026 lapsed appropriations contingency plan that went into effect Wednesday.
“During a government shutdown, there could be impacts to IRS services,” said Elizabeth Young, director for tax practice and ethics with the American Institute of CPAs. “However, electronic filing systems typically remain operational, so you can still file online.”
Double-check your filing
While it may be tempting to rush through your tax return to meet the Oct. 15 deadline, errors could cause IRS processing delays, according to Young.
The IRS has “very sophisticated software” that compares information returns, such as W-2s and 1099s, to what’s reported on your filing, she previously told CNBC.
Most tax forms arrived in January, February or March. But others may have taken longer, depending on your situation. You can compare your current-year return to last year’s filing to avoid missed forms and information, experts say.
