Last updated on January 2nd, 2026 at 12:53 pm
The IRS has fully resumed operations now that the government shutdown has ended, which means that taxpayers and tax professionals need to prepare for a restart of IRS activities. Whether your case involves audits, collections, appeals, or simply rescheduling a missed appointment, understanding what to expect next is crucial.
During the shutdown, many IRS processes were paused, and now that normal operations have resumed, there will be a period of catching up. This means taxpayers should be prepared for renewed IRS contact, potential processing delays, and the need to respond promptly to any notices or requests.
Here’s what taxpayers and tax professionals need to know as the IRS gets back to full speed.
Key Takeaways
- The IRS has fully reopened and is actively restarting audits, collections, appeals, and taxpayer services.
- Taxpayer Assistance Center appointments canceled during the shutdown must now be rescheduled.
- Audits and collections may move quickly as the IRS works through its backlog, so preparation is essential.
- Appeals cases are resuming, and taxpayers should be ready for new deadlines or documentation requests.
- TAS is open but heavily backlogged, so response times will be longer than usual.
- Retirement plan, tax-exempt, and qualified bond issuer filings are being processed again, though with delays.
IRS Taxpayer Services Are Reopening: What You Should Expect
With offices fully operational again, the IRS has resumed in-person assistance through its Taxpayer Assistance Centers.
If your appointment was canceled during the shutdown, you may receive an email or text inviting you to reschedule using the IRS SMART Scheduler. Those who do not receive a scheduling link can call their local office to arrange a new time.
Because IRS staff are now working through a backlog, some delays are expected. Processing times for certain tax forms, amended returns, and written correspondence may still be slower than usual. The IRS encourages taxpayers to check the Processing Status for Tax Forms page so they know what to expect while operations normalize.
Clear communication and timely follow-up are essential during this transition period, especially for anyone who had pending issues before the shutdown.
What IRS Audit Resumption Means for You
IRS audits that were paused during the shutdown are now moving forward again, and taxpayers with active examinations should expect renewed communication from their assigned auditors. This may include updated document requests, revised deadlines, or notices explaining how the shutdown impacted the review of your return. If the IRS previously requested information, they will likely reissue or update those requests as they resume casework.
Audits delayed by the shutdown may now progress more quickly as the IRS works through its backlog. This makes it important to gather your records early and be prepared for the IRS to resume contact. Even if your deadline passed during the shutdown, you are still responsible for responding once the IRS restarts your examination.
Taxpayers and practitioners can refer to the Exam Resumption FAQs for IRS guidance, but it is equally important to stay proactive. Organizing your documentation now and responding promptly when the IRS reaches out can prevent unnecessary delays or expanded scrutiny. If you feel uncertain about what the IRS is asking for or how to present your information, this is the time to involve a tax professional before the audit accelerates.
Collections Are Active Again: Liens, Levies, Notices, and Penalties
The IRS has resumed collection activities, which means taxpayers with outstanding balances should expect renewed enforcement efforts. If your case involved a lien, levy, wage garnishment, passport certification, or a notice of deficiency, these actions may pick back up now that the shutdown has ended. Some taxpayers may also receive notices that were delayed or paused, including automated letters related to overdue taxes or missing payments.
When IRS collections restart, timing becomes critical. Interest and penalties continued to accrue during the shutdown, even though some enforcement activities were paused. If you were already behind on payments, the IRS may contact you quickly to restart your installment agreement, request updated financial information, or reissue a notice demanding action.
Ultimately, taxpayers with unresolved debts should not wait for a notice to arrive. Taking early steps to communicate with the IRS or secure representation can prevent harsher enforcement measures.
If your financial situation changed during the shutdown, you may need a reassessment of your payment plan or eligibility for relief options. A tax attorney can help you understand your options, respond to notices, and prevent a stressful collection restart from escalating into a lien or levy.
Service Reopened but Working Through a Backlog
The Taxpayer Advocate Service (TAS) has reopened all offices, but due to the length of the shutdown, the agency is now working through a significant backlog of cases, calls, and submitted documentation. TAS operates as an independent resource within the IRS for taxpayers facing financial hardship, delayed resolutions, or systemic issues. However, because of the volume of paused work, taxpayers should expect slower response times than usual.
If you call TAS, your call may go to voicemail. The agency recommends leaving your name, phone number, case number (if you have one), and a clear explanation of your issue. Cases will be prioritized based on urgency, meaning taxpayers experiencing severe hardship or imminent enforcement actions will typically be handled first.
While TAS is a valuable resource, it is not a rapid-response option during backlog periods. Taxpayers with time-sensitive issues, such as levies, audit deadlines, or appeal windows, should not wait for TAS availability before taking action. Consulting a tax attorney or representative in parallel can help ensure that urgent deadlines are met while TAS works through its caseload.
The IRS is Forgiving Millions Each Day. You Could Be Next.
Updates for Tax-Exempt Organizations and Retirement Plans
The IRS has also resumed processing in several key areas that were paused during the shutdown, affecting retirement plans, tax-exempt organizations, and issuers of qualified bonds. These areas often involve long application timelines, so understanding what has restarted, and what delays remain, is essential.
1. Retirement Plan Determination Letters and Compliance Applications
Processing has resumed for Determination Letters and Voluntary Compliance Statements related to retirement plans. These applications establish or correct a plan’s tax-favored status, and many employers were left waiting without updates during the shutdown. The IRS is working to reduce delays, but taxpayers should expect longer-than-normal review times as the backlog clears.
2. Tax-Exempt Status Applications
Organizations applying for tax-exempt status may now see movement on their applications. While the IRS aims to minimize shutdown-related delays, applicants may still experience extended processing times. During the waiting period, organizations should continue maintaining required records and follow any guidance outlined on the IRS’s exemption application processing page.
3. Credit Payments to Qualified Bond Issuers
Issuers of qualified bonds who rely on refundable credit payments via Form 8038-CP will see these filings processed again. Since shutdown delays may have created financial pressure for some issuers, early submission of any pending forms can help reduce further delays.
Prepare Now That IRS Operations Are Back in Motion
With the government shutdown over, the IRS is fully operational again and rapidly working through months of delayed activity. Whether you are dealing with an audit, collections notice, appeal, or a paused application, this is the time to get organized and proactive. IRS deadlines may restart quickly, enforcement may resume without warning, and backlogged cases can move faster than expected as the agency catches up.
If you are uncertain about what the IRS expects from you, or if your case is restarting after weeks of inactivity, getting professional guidance now can prevent costly mistakes and protect your rights.
Schedule a free consultation with J. David Tax Law to get ahead of your IRS issue and move forward with confidence.
FAQs About IRS Operations Resuming After the Shutdown
Audits that were paused are restarting, and the IRS may issue new deadlines or document requests. Taxpayers should prepare now and respond promptly once contact resumes.
Yes. Liens, levies, notices, and payment requests will resume. Interest and penalties continued during the shutdown, so taxpayers with balances should act quickly.
Some taxpayers will receive SMART Scheduler links by email or text. Others can call their local TAC directly to reschedule canceled appointments.
TAS is open but experiencing a heavy backlog. Cases are being triaged by urgency, so response times may be longer than usual.
Yes. Appeals officers are resuming work on delayed cases, which may lead to renewed contact and updated deadlines for taxpayers involved.
