Post-Government Shutdown Delays: Navigating IRS Backlogs
The end of the historic government shutdown doesn't mean a quick return to normal for the IRS. The agency is now managing a massive backlog, leading to significant delays for taxpayers. Understanding these delays is critical to helping clients navigate filing, correspondence, and examination matters with realistic expectations.
Post-Government Shutdown Processing Timelines
Here’s a clear breakdown of what to expect with Key Processing Timelines (as of late November 2025)
Individual Tax Returns
E-filed: Processed within ~21 days.
Paper-filed: The IRS is currently taking 3-4 weeks to process. Returns needing special handling (e.g., identity theft, deceased taxpayers) can take over a year.
Amended returns paper filings are even further behind, averaging 6-9 weeks.
Business Tax Returns
E-filed: Processed within ~21 days.
Paper-filed: Forms (1120, 941, 1041) are taking on average 6 to 9 weeks for processing.
Tax-Exempt Applications
Form 1023-EZ (Short Form): 1-2 months for most determinations.
Form 1023 (Long Form): 6 to 9 months for most determinations; currently, they are reviewing applications filed from the 1st quarter of 2025
Forms 1024 & 1024-A: ~7 to 9 months for most determinations.
Authorizations & Other Forms
Power of Attorney (Form 2848): ~up to 1 month if submitted by fax. If submitted with Tax Pro online it will take 1-2 weeks
Identity Theft Affidavits (Form 14039): Extreme delays, expect 12 to 16 months for any resolution.
General Correspondence: The IRS has a 6-month backlog for individual letters and for business letters a 9-month backlog.
What's Moving Again (But Slowly)
Audits & Exams: IRS examiners are rescheduling appointments and trying to catch up. Note: Critical deadlines, like the 90-day period to petition the Tax Court after a Notice of Deficiency, were not extended.
Collections: Revenue Officers are rescheduling appointments and processing payments submitted during the shutdown. Collection Due Process (CDP) hearing requests are now being processed.
Appeals: The IRS Appeals Office is reopening cases and returning messages but expect long wait times.
Taxpayer Advocate Service (TAS): Offices are open and prioritizing financial hardship cases, but response times are longer than usual.
What This Means for the Upcoming Filing Season
The upcoming tax filing season is expected to begin later than usual, potentially in early to mid-February. The IRS is also preparing to implement new tax forms resulting from recent legislation, which may contribute to the adjusted timeline. Given these widespread delays, clear and proactive client communication is essential to manage expectations and prevent frustration.
Help with Post-Government Shutdown Delays
Need Support Navigating IRS Delays? We are Here to Help. CSH’s tax controversy professionals are closely monitoring the IRS’s recovery efforts. We can help you manage filings, navigate correspondence, and maintain clear communication with your clients during this period of extended disruption.
Contact us today to discuss how we can support you through these ongoing challenges.
