IRS Furlough Guide: Will Your Refund Be Delayed? Can You Get Help?

The news that a significant number of IRS employees have been furloughed due to the ongoing government shutdown has left millions of taxpayers with unanswered questions. If you’re asking what this means for your refund, the final October filing deadline, the tax filing process, or who you can reach out to for help, you are not alone. Here’s the clarity you need on what this furlough means for your taxes — and how to navigate it successfully:

Key Takeaways:

• File by the deadline: The tax deadline for extension filers of October 15 is still in effect for tax year 2024.
• E-file for speed: The IRS continues to process e-filed returns and issue direct deposit refunds.
• TurboTax is here for you: TurboTax experts are here to answer your questions and prepare your 2024 tax return by the final October 15 deadline.

What does furlough mean?

A furlough is when employees are placed on temporary, unpaid leave. In the case of the IRS, the furloughs are the result of the recent federal government shutdown causing budgetary constraints. As a result of October 8 announced furloughs, close to half of IRS staff will not report to work, leaving some regular duties — such as answering customer service calls and investigating cases suspended or significantly delayed. While the budgetary shutdown is the broader issue, the furlough directly impacts taxpayers needing customer support as this is expected to cause service gaps and delays.

How does this affect my refund and taxes?

The IRS furloughs affect some critical areas related to taxpayers. Below are answers to some of the most common concerns.

Do I still need to file my 2024 taxes by the October 15 deadline if I’m on extension?

Yes. The October 15 deadline still applies, and you should file by this date to avoid potential late-filing penalties. The only exception is if you’ve been granted a specific extension due to a recent federally declared disaster.

Will my refund be delayed?

E-filing is the fastest way to get your return processed, and you’ll receive an electronic confirmation once your return is accepted by the IRS. 

According to the IRS, processing for most returns and refunds will continue as usual. If you e-file and choose direct deposit for your refund, the IRS will process your return and issue your payment as they usually do. Filing as soon as possible and opting for direct deposit can help streamline the process.

What happens to paper returns or correspondence?

If you’ve filed your taxes on paper, there may be processing delays. Similarly, letters sent to the IRS or requests requiring physical responses may go unanswered until the shutdown ends.

Are audits and collections paused?

Audits and collections generally slow down during a furlough, as the IRS does not have enough personnel to conduct in-depth reviews or pursue collections actively. However, automated notices may still continue, so it is critical not to ignore any IRS correspondence. 

Where can I turn for help?

With IRS services limited during the furlough, taxpayers may find it challenging to get assistance for tax-related concerns, but don’t worry, TurboTax has got you covered. Here’s how we can support you during this time:

• TurboTax Expert Full Service: It may be difficult to reach the IRS, but TurboTax Expert Full Service provides access to tax experts who can answer your questions, find all the deductions and credits you’re eligible for, and accurately prepare your taxes so you can make the final extended tax deadline.
• File Electronically with Confidence: TurboTax simplifies the tax filing process, ensuring that your information is accurate and your refund is maximized..
• Real-Time Up to Date Information: Our team actively monitors developments from the IRS so you can check back with the TurboTax blog to get up to date information.

Navigating taxes during uncertain times can feel overwhelming, but you don’t have to do it alone. TurboTax experts are here for you and available to answer your questions, prepare your tax return, and maximize your refund before the final extended tax deadline — even while the IRS is dealing with furlough challenges.