• The Deductibles
  • Posts
  • 🚨 Gelt Quick Update - IRS Furloughs Nearly Half Its Staff

🚨 Gelt Quick Update - IRS Furloughs Nearly Half Its Staff

Here’s What It Means for You

Hey,

You may have seen the headlines - the IRS just announced it’s furloughing roughly 34,000 employees, nearly 46% of its staff, as the government shutdown enters its second week.

Here’s what that means for you, your tax filings, and what steps to take next.

Highlights -

  • Tax deadlines remain in place — October 15 extension filers must still submit and pay on time.

  • E-filing, online payments, and IRS systems remain active but may process more slowly.

  • Expect refund and correspondence delays; stay proactive and keep confirmations for all filings.

🧩 What’s Happening

Due to the lapse in federal funding, the IRS has placed nearly half of its workforce on temporary unpaid leave, halting most of its day-to-day operations.

Here’s what’s affected:

  • ☎️ IRS Call Centers & In-Person Help: Taxpayer assistance lines and offices are mostly closed.
    🧾 The Taxpayer Advocate Service: Ceasing operations until funding resumes.

  • 📬 Mail & Notices: Paper correspondence and notices will likely sit unprocessed for now.

🏛️ Administrative & Planning Functions: Most internal IRS operations are paused.

🗓 Filing Deadlines Still Apply

Even during a government shutdown, tax deadlines do not stop.

If you filed for a six-month extension on your 2024 taxes, your return is still due October 15.

 You should continue to:

  • File electronically (returns are still being timestamped and accepted)

  • Pay any balance due through IRS.gov or EFTPS

Keep all confirmation receipts for your records

⚙️ What’s Still Running

Despite the furloughs, about 40,000 IRS employees remain on the job handling critical functions, such as:

  • Processing e-filed returns and payments

  • Preparing for the 2025 filing season

  • Maintaining systems tied to the Social Security Administration and Treasury operations

Electronic systems - including e-filing, online payments, and transcripts - remain operational, though you may experience slower processing times.

💡 What This Means for You

Here’s what to expect over the coming weeks:

  • Delays in refunds and correspondence: Paper filings, amended returns, and notice responses will take longer.

  • ⚖️ No pause on penalties or interest: Payment deadlines and compliance timelines still apply.

  • 💬 Limited communication: IRS representatives are unavailable until funding resumes.

🧠 Stay proactive: Keep filing and paying as usual to avoid future complications.

🧭 Our Take: Stay the Course

While this shutdown is frustrating, it’s temporary. Think of it as a slowdown, not a stop.

Your filings, payments, and records remain secure - they just may take a little longer to process.

We’ll continue to monitor IRS updates daily and will notify you immediately of any changes to deadlines, payment relief options, or service restorations.

If you have a refund pending, an extension due next week, or an open IRS case, please reply to this email or reach out to your Gelt advisor directly.

We’re here to make sure your filings stay compliant and your peace of mind stays intact.

Stay calm, stay proactive, and we’ll guide you through it.

Best,
Tal Binder, Founder

Is Gelt a Fit for You?

We work with founders, investors, and business owners who are ready to go beyond basic tax prep. If you want to:

✔️ Keep more of what you earn
✔️ Plan with intention, not just react at tax time
✔️ Partner with a team that understands your goals

We’d love to help you take the next step. Schedule a call to learn more

🤝 Check out Gelt’s LinkedIn and YouTube for even more tax insights and tips.