By Yuvraj Tyagi
Copyright timesnownews
The US entered its first government shutdown since 2019 at midnight on October 1, 2025. The dispute over healthcare funding between Republicans and Democrats led to a halt in non-essential federal services. About 750,000 federal employees were furloughed, while essential staff in security, air traffic control, and law enforcement continue to work without pay. National parks from Yellowstone to the Everglades are closed, and travel services, including passport processing, are delayed. Airlines warned of possible flight disruptions as federal systems slow. Despite the chaos, the Internal Revenue Service remains operational. Thanks to $37.6 billion in contingency funding from the 2022 Inflation Reduction Act, the IRS has enough resources to maintain full staff for the first five business days of the shutdown. According to the Treasury Department, “normal IRS operations will continue.” Tax deadlines, including October 15 for 2024 returns, and quarterly estimated payments are unaffected. Enrolled agent Jassen Bowman told CNET, “Yes, even with a government shutdown, the US Treasury still expects everybody to be sending in payments.” IRS and Taxpayer Guidance After the initial funding period, only “excepted” IRS functions will continue with reduced staffing, such as automated collections and criminal investigations. Historical precedent shows delays are possible, during the 35-day 2018-2019 shutdown, refunds were delayed for millions, and $2 billion in collections were temporarily lost, according to the Congressional Budget Office. Also Read: Breaking News Today Live: US Government Shutdown To Last For At Least Three Days Paper filings and phone assistance may face long waits, but electronic systems remain operational. Tax professionals strongly advise filing electronically and paying online where possible. Ripple Effects Beyond Taxes The shutdown also impacts other programs. SNAP benefits for October are safe due to prior funding, but WIC may stop new enrollments. Routine VA claims could pile up. Payroll withholding schedules for businesses must continue or risk penalties. Economists estimate each shutdown day costs roughly $1.4 billion in lost productivity. While government offices may be closed, your tax obligations remain. Citizens are urged to plan accordingly and avoid penalties. Get Latest News Live on Times Now along with Breaking News and Top Headlines from US News and around the World.
