Don't let the government shutdown cost you: What you need to know about tax extension deadlines this October

The headlines are swirling with talk of government shutdowns and IRS furloughs, but here's what you need to know: your tax extension deadline hasn't budged an inch. If you filed for a six-month extension back in April, your 2024 tax return is still due by 11:59 PM on Wednesday, October 15, regardless of what's happening in Washington.

While the political drama unfolds, the IRS has furloughed more than 34,400 of its 74,300 employees since October 8, creating some confusion about what services remain available. The good news? The essential systems you need to file your taxes are still running smoothly.

The numbers tell the story

You're not alone in needing that extra time. During fiscal 2024, the IRS received more than 20 million tax extension forms, and for 2025, it expects that number to be around 19.8 million. That's roughly 13% of all taxpayers who need those extra six months to get their paperwork in order.

The extension system exists for good reasons—complex tax situations, missing documents, or simply needing more time to ensure accuracy. But remember, an extension to a file isn't an extension to pay. Any taxes you owed were still due on April 15 to avoid interest and penalties.

Also read: October brings energy relief: Four programs delivering up to $3,200 to cash-strapped Americans

What the shutdown means for your filing experience

Despite the political turmoil, only 53.6 percent of IRS staff will continue working while the government remains shut down. This creates some practical challenges, but it doesn't prevent you from meeting your deadline.

The most significant impact? Customer service. If you were counting on calling the IRS for help, you'll likely face much longer wait times or be unable to reach a representative at all. As one taxpayer union representative warned, “Taxpayers around the country will now have a much harder time getting the assistance they need, just as they get ready to file their extension returns due next week.”

What's still working normally

The essential filing infrastructure remains operational. Electronic filing systems typically remain operational, so you can still file online, and most e-filed returns are processed as usual, and tax refunds are still being issued through direct deposit.

Smart filing strategies during the shutdown

Given the reduced IRS staffing, your filing approach matters more than ever. Here's how to navigate the current situation successfully:

Go electronic, avoid paper: File electronically to ensure your return is processed faster. This is especially important during a government shutdown. Paper returns could face significant delays with reduced processing staff.

Choose direct deposit: Use direct deposit to avoid delays in receiving your tax refund. With limited staff handling paper checks, electronic refunds will arrive much faster.

Double-check everything: While it may be tempting to rush through your tax return to meet the Oct. 15 deadline, errors could cause IRS processing delays. Take time to review your work carefully—getting help later will be much more difficult.

Also read: Your 2024 income could raise your Medicare costs in 2026—here’s how to avoid paying more than you should

Special circumstances and disaster relief

Some taxpayers have additional time beyond October 15. Taxpayers in certain parts of Arkansas, Kentucky, Mississippi, Missouri, Oklahoma, Tennessee, Texas, Virginia, and West Virginia may have until November 3, 2025, or later if affected by other federally declared disasters.

Los Angeles County residents affected by wildfires that forced the evacuation of at least 180,000 people in January automatically receive extra time to file and make certain payments or contributions. Check the IRS disaster relief page to see if you may qualify for additional time.

Understanding the penalties if you miss the deadline

The consequences for missing October 15 are the same as any other year. The late payment penalty is 0.5% of your unpaid balance per month or partial month, capped at 25%. If you also owe a late filing penalty, that's 5% of the amount due per month, also capped at 25%.

However, interest and penalties will continue to accrue on unpaid taxes during the shutdown, so the sooner you file and pay, the better.

What this means for Social Security recipients and retirees

If you're receiving Social Security benefits, your monthly payments continue normally during the shutdown—that's not affected. However, if you have questions about how your benefits interact with your taxes, getting answers from the IRS will be much more challenging right now.

Many retirees rely on phone support for complex questions about required minimum distributions from retirement accounts, Social Security taxation, or Medicare premium adjustments. With severely limited customer service, it's more important than ever to use reliable tax software or consult with a tax professional if you have complicated situations.

Payment options that work during the shutdown

If you owe taxes, you have several options that remain fully operational:

• IRS Direct Pay: Free online payment directly from your bank account
• Credit or debit cards: Available but may include processing fees
• Electronic payment plans: Can be set up online if you can't pay the full amount

Taxpayers who owe can pay online using IRS Direct Pay at no cost or use a debit card, credit card, or digital wallet, which may be subject to a payment processing fee. If taxpayers have a balance and can't pay it now, they should apply for a payment plan.

Also read: New state tax program lets you settle back taxes with no penalties or interest

The current government dysfunction might feel overwhelming, but your tax obligations remain straightforward. Focus on what you can control: filing electronically, paying what you owe, and avoiding the need for IRS assistance by being extra careful with your return.

Remember, this situation is temporary, but missing your tax deadline creates problems that can last much longer. Take advantage of the systems that are working well—electronic filing and payment—and you'll navigate this challenge successfully.

Read next:

• Don't lose your benefits! Discover which Social Security services you can still access during a government shutdown
• Get ready for a Social Security update: When the 2026 COLA will be announced

Key Takeaways

• Taxpayers who requested an extension from the IRS are still required to file their income tax returns by October 15, despite the US government shutdown.
• The vast majority of IRS operations are closed during the shutdown, with only essential staff remaining on duty, but tax responsibilities and deadlines remain unchanged.
• People in some states affected by recent natural disasters, like Arkansas, Tennessee, Kentucky, and parts of West Virginia, have been granted extra time until 3 November to lodge their federal tax returns.
• Missing the October 15 deadline can result in a penalty of 5% per month (up to 25%), although the IRS may waive penalties if there's a reasonable explanation included with the late filing; those due a refund generally won’t be penalized.

Have you ever filed for a tax extension? Did you run into any surprises or have tips for making the process smoother? Or maybe you have questions about how the government shutdown could affect your taxes?