The Internal Revenue Service (IRS) in the US has published the ‘IRS FY2026 Lapse Appropriations Contingency Plan’ detailing a framework to manage its operations during the ongoing partial shutdown of the federal government.
The shutdown began on 30 January 2026. The IRS plan took effect on 31 January and is intended to cover operations through to 7 February 2026.
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It explains the actions the agency will take over the first five working days after government funding lapses.
According to the plan, the IRS will draw on funding from the Inflation Reduction Act of 2022, P.L. 117-169, to keep the agency fully staffed through to 7 February.
The document also specifies how many employees are considered exempt and will remain on duty if the funding lapse were to continue.
Publication of the plan came as the Senate passed a funding package late Friday following a bipartisan deal. However, the agreement still requires approval from the House of Representatives.
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By GlobalDataIn the Senate, agreement was reached on five spending bills that would fund a significant share of the federal government for the rest of the fiscal year, according to a report in the New York Times.
The report said the agreement also covers a two-week extension of funding for the Department of Homeland Security.
Meanwhile, in a letter, the American Institute of CPAs (AICPA) warned that furloughs at the IRS resulting from a shutdown could seriously disrupt the ongoing 2026 filing season and harm taxpayers.
“The consequences of furloughing IRS employees, reducing taxpayer and practitioner services, and introducing the prospect for prolonged or widespread technology disruptions could prove to be detrimental to the success of the filing season currently under way and the effective and timely implementation of recent legislative changes,” the AICPA said in the letter.
