Do Texans with tax extensions still have to file during a government shutdown?
The government shutdown has stretched into another week, leaving many Texans unsure of what it means for their taxes.
For those who filed for an extension earlier this year, the Oct. 15 deadline is quickly approaching, but with agencies closed and workers on hold, some are wondering if the IRS is still operating as usual.
Will the agency process returns? Will the deadline shift? Or do taxes still need to be filed on time even while Washington remains at a standstill?
Here’s what to know.
Will the Oct. 15 tax deadline change during a shutdown?
The short answer is no. Federal tax due dates are established by law, meaning they cannot be postponed just because Congress has not passed a budget, according to the IRS agency contingency plan.
Even during the shutdown, the IRS will continue operations using funds already approved through the Inflation Reduction Act.
That funding allows the agency to keep essential systems running, including processing returns, accepting electronic filings, and recording payments.
The IRS encourages taxpayers to file by October 15 to avoid penalties and interest, even if other parts of the government temporarily close.
What happens to IRS workers during a shutdown?
According to the agency’s contingency plan, roughly 74,000 IRS employees are classified as “essential” or “exempt.”
That means they must continue working during a government shutdown, even if their pay is delayed until funding is restored.
These workers include those in tax processing, criminal investigations, IT maintenance, and taxpayer assistance.
Once funding resumes, all employees are expected to receive back pay. The Treasury Department says this plan ensures critical IRS functions can continue while the government is partially closed.
Will payments and refunds still be processed?
Yes. The IRS will keep accepting and processing tax payments, including those submitted electronically through IRS.gov or tax software providers.
Automated systems will continue handling most returns without interruption. However, the IRS contingency plan notes that paper filings may take longer to process if staffing is reduced. If the government shutdown lasts longer than five business days, then most of the agency would close.
Refunds will still be issued, though taxpayers could experience delays if their return requires manual review.
To avoid issues, tax professionals recommend filing electronically and selecting direct deposit instead of a paper check. The agency’s “Where’s My Refund?” tool will remain active online for anyone waiting to track their refund status.
What if I miss the Oct. 15 deadline?
If you do not file by October 15, the IRS may charge both a failure to file penalty and a failure to pay penalty, depending on your situation.
The failure-to-file penalty is typically 5% of the unpaid tax per month, up to a maximum of 25%. Interest also starts accruing from the original April filing deadline, not from October.
If you cannot pay your full balance, the IRS still recommends filing your return on time and requesting a payment plan afterward.
Doing so stops the largest penalty from increasing and shows you are making an effort to comply. Failing to file at all can lead to additional penalties and collection notices.
