IRS Shutdown: Do My Tax Deadlines Still Apply?

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BREAKING: The IRS has announced limited operations, effective October 21, 2025, due to a lapse in congressional appropriations. Despite the shutdown, all tax deadlines remain in effect for American expats, and electronic filing with direct deposit continues, meaning refunds will still be processed.

The government shutdown began at 12:01 AM EDT on October 21, 2025, furloughing most IRS employees. However, in a statement released by the IRS, the agency confirmed that tax law remains unchanged and taxpayers must continue meeting their obligations as usual.

For the approximately 9 million Americans living abroad, this means that the filing deadlines for 2025 tax returns, FBAR requirements, and international information forms, which were originally scheduled for June 15 and October 15, 2026, remain unchanged, regardless of whether the shutdown is in effect or not.

The critical takeaway: The IRS will process error-free electronic returns and issue refunds via direct deposit during the shutdown. Paper returns, however, will face significant delays once government operations resume.

What’s Still Operating at the IRS Right Now

Despite the shutdown that began yesterday, several critical services remain operational for expats:

Electronic filing and refunds continue: The IRS confirmed today it will process error-free electronic returns and issue refunds via direct deposit. This is the fastest route to receiving any refund during the shutdown.
IRS.gov remains fully functional: Online tools, including Where’s My Refund, Get Transcript, IRS2Go mobile app, and the Online Payment Agreement system, continue working normally as of this morning.
Payments are being processed: The IRS accepts and processes all payments during the shutdown, whether by check, wire transfer, or electronic payment.
Income verification services operate: The IRS Income Verification Express Service (IVES) remains available for mortgage applications and other income verification needs.

What Services Shut Down

Effective October 21, 2025, these IRS services are suspended:

All Taxpayer Assistance Centers closed: In-person IRS offices shut down immediately yesterday, and all scheduled appointments have been canceled.
Phone support severely limited: Automated systems work, but live customer service is minimal. Expats needing guidance on complex international tax issues should not rely on reaching the IRS by phone during this period.
Mail processing halted: The IRS will receive correspondence but won’t respond during the shutdown. Responses sent now will face significant processing delays once operations resume. Keep proof of mailing if responding to IRS notices with deadlines.
No processing for tax-exempt organizations: Applications for tax-exempt status and pension plan determinations are suspended.
Appeals and Taxpayer Advocate meetings canceled: All scheduled appointments with the Independent Office of Appeals and Taxpayer Advocate Service will be rescheduled after the shutdown ends.

What Expats Must Do Right Now

Despite the shutdown, here’s what Americans abroad need to know today:

File electronically if expecting a refund: With about two-thirds of expats receiving refunds when proper exclusions and credits are applied, electronic filing with direct deposit is the fastest path to payment during the shutdown. Paper returns will sit unopened for weeks or months.
Don’t delay international information forms: Forms 5471 (foreign corporation), 8865 (foreign partnership), and other international forms have strict deadlines with penalties often exceeding $10,000 per form for late filing. The shutdown does not change these deadlines.
Pay what you owe on time: Interest and penalties continue accruing during the shutdown. Use IRS Direct Pay, wire transfer, or mail a check. All payment methods remain operational.
Document everything: If responding to an IRS notice, send via certified mail with return receipt. You’ll need proof that you met the deadline, even if processing is delayed for weeks.
Consider professional help now: Government shutdowns historically create long-term processing backlogs. Getting complex expat tax issues right the first time becomes more important when the IRS is already short-staffed.

Will the 2026 Filing Season Be Delayed?

In its statement released on October 21, 2025, the IRS announced it will continue “critical operations” for preparing the 2026 filing season, including system testing and program preparation. However, the agency has not yet announced an official start date for the 2026 season, which typically begins in late January or early February.

If the shutdown extends for weeks, potential issues include delayed systems readiness, mounting backlogs of prior-year returns, and reduced call center capacity.

For expats who typically file before the June 15 automatic extension deadline, the recommendation is to file early once the season opens rather than waiting until spring.

Expert Analysis: How Long Will This Last?

While it’s impossible to predict when Congress will pass appropriations legislation, historical government shutdowns have lasted anywhere from one day to 35 days. The longest shutdown on record occurred from December 2018 to January 2019.

What’s certain: tax obligations don’t pause for political gridlock. The IRS has made clear that all filing and payment deadlines remain in effect, and penalties will be assessed for late compliance once operations resume.

How Greenback Is Handling the Shutdown

Greenback Tax Services continues normal operations during the IRS shutdown. The team of CPAs and IRS Enrolled Agents, many expats themselves living across 14 time zones, specializes in:

Electronic filing to take advantage of continued refund processing during the shutdown
Complex international forms that must be filed correctly to avoid massive penalties
Strategic planning using Foreign Earned Income Exclusion (up to $130,000 for 2025), Foreign Tax Credit, and treaty benefits
Navigating IRS notices and knowing how to respond, even when IRS processing is delayed

With 23,000+ expats helped and 71,000+ returns filed while maintaining a 4.9-star TrustPilot average, the company focuses on getting returns right the first time to avoid delays when IRS processing resumes.

Bottom Line for Expats

The government shutdown that began yesterday doesn’t change tax law or filing deadlines. Americans living abroad must still:

File 2025 returns on time (June 15 or October 15, 2026 for most expats)
Pay any taxes owed by the deadline
Submit required international information forms
Respond to IRS notices by their stated deadlines

What continues: Electronic filing, refund payments, and online tools remain available. If filing electronically with direct deposit, the shutdown will likely have minimal impact on your refund.

What’s affected: IRS customer service, correspondence processing, and a growing backlog once the government reopens. Getting returns right the first time matters more when processing delays are inevitable.

For expats dealing with foreign business ownership, multiple income streams across countries, or complex situations, professional guidance ensures compliance despite IRS service limitations. If you’re behind on filing, the Streamlined Filing Procedures offer penalty-free catch-up options for those who unintentionally failed to file.

Need help with your expat taxes during the shutdown? If you’re ready to be matched with a Greenback accountant, click the get started button below. For general questions on expat taxes or working with Greenback, contact our Customer Champions.

Don’t Let the IRS Shutdown Add to Your Tax Stress

Deadlines haven’t changed, but IRS support has disappeared. Our CPAs and Enrolled Agents are working normally—ready to file your return electronically and get you the refund you’re owed, shutdown or no shutdown