IRS Updates Contingency Plan as Government Shutdown Continues

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Posted Oct. 9 at 2:14 p.m. EST

The IRS released an updated FY 2026 Lapsed Appropriations Contingency Plan on Oct. 8, effective through April 20, 2026, in response to the ongoing government shutdown. Per the plan, approximately 46% of IRS employees were furloughed, while 53.6% remain on the job as the shutdown continues. Under its initial contingency plan, the agency kept all employees working for the first five business days of the shutdown. Now in the second week of the shutdown, the IRS continues to retain a majority of its staff, prioritizing personnel necessary to provide critical guidance related to Public Law 119-21 (HR 1).

In an email to state society leaders, the AICPA said it continues to urge the IRS to exempt 100% of its employees from furlough for the duration of the shutdown. It has also created a landing page with information covering all federal government shutdowns.

Stay informed: Read the full IRS contingency plan to learn more about how a potential shutdown could affect filing season. 

The South Carolina Association of CPAs is closely monitoring these developments and will continue to provide updates as they become available. 

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