Correction, 10/15/2025: This article has been updated to accurately reflect Erik Asgeirsson’s title as CEO and president of CPA.com.
The American Institute of Certified Public Accountants (AICPA) has urged the IRS to keep its full workforce in place and to adopt targeted relief measures for taxpayers during the current government shutdown; reduced staffing and continued compliance actions could disrupt tax administration and create significant hardship for both taxpayers and practitioners.
The shutdown, which began October 1, has left approximately half of IRS employees furloughed, a decision swiftly met with pushback from labor unions and policy advocates. But the tax and accounting group argues that less than 100% operating capacity is not enough to meet taxpayer needs.
In an October 9 letter to Treasury Secretary and acting IRS Commissioner Scott Bessent, Tax Executive Committee Chair Cheri Freeh emphasized that processing tax returns and collecting revenue are essential government functions that should not be interrupted, as “taxpayers should have recourse to protect their rights and property.”
Freeh highlights problems from past shutdowns, including the continued issuance of automated collection notices when there are not enough staff to resolve taxpayer issues. The group also noted that classifying the Taxpayer Advocate Service as non-essential has previously led to increased open cases and economic hardship.
Relief Recommendations
To address these concerns, the AICPA recommends the IRS suspend compliance actions and automated collections, such as liens and levies, until at least 60 days after the shutdown ends. The letter explains that automated notices can accumulate without staff to process responses, resulting in unresolved issues and loss of taxpayer rights.
The AICPA also calls for all IRS online systems — including the Electronic Federal Tax Payment System, e-services, and the Centralized Authorization File — to remain fully operational. Disruptions to these systems, the letter notes, can prevent taxpayers from making payments or accessing their accounts, potentially leading to further penalties and compliance issues.
Additionally, the AICPA seeks targeted relief from estimated tax and late payment penalties for those affected by the shutdown. The group proposes relief for taxpayers who pay at least 70% of the current year’s tax due or 70% (90% for higher-income taxpayers) of the prior year’s tax, and for those who timely request an extension and pay at least 70% of taxes owed. This, the AICPA argues, would reduce administrative burdens and prevent unnecessary hardship.
The letter further recommends a streamlined reasonable cause penalty waiver, separate from the first-time abatement program, for those affected by the shutdown. Freeh states that penalty relief related to the shutdown should not affect a taxpayer’s eligibility for first-time abatement in future years and urges the IRS to inform taxpayers and practitioners about the available relief.
These actions are necessary to protect taxpayer rights, prevent hardship, and avoid administrative backlogs that could delay the next filing season, according to Freeh. “The IRS should not continue notice and collection activities, especially automated activities, during a government shutdown unless the IRS has its full resources available.”
Clock Is Ticking
At a town hall event hosted by the organization Thursday, CPA.com President and CEO Erik Asgeirsson said its members discussed the feasibility pushing for an extension to the October 15 tax deadline. Ultimately it was decided the focus should be on other forms of relief.
“[I]f we were to pull our members here, about half would say extend. That other half would say don’t extend it as long as the IRS is doing what it needs to do,” said Asgeirsson. “The systems still seem to be up and running.”
Executive Vice President Mark Peterson, piggybacking on this, added that the AICPA has been “hearing from firms, and what we want to do is translate that into real, practical things that we can recommend the IRS can do to try and relieve some of this.” As for extending the October 15 due date, both Asgeirsson and Peterson agreed that is “not realistic” so close to the deadline.
Peterson offered that when congressional leaders feel they are “really close to a breakthrough” in negotiations to put forth a funding bill to clear the 60-vote threshold in the Senate, there could be “another short-term extension for a week or two.”
“But honestly,” said Peterson, “it’s kind of day-to-day.”
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