IRS Furloughs and the 2025 Shutdown: How DMV Taxpayers Can Avoid Delays
If you’ve tried calling the IRS lately, you’ve probably noticed longer wait times and slower responses.
With the federal government’s partial shutdown and recent IRS furloughs, tax processing across DC, Maryland, and Virginia has temporarily slowed down — creating ripple effects for individuals and businesses alike.
Why the Shutdown Matters for Taxpayers
The IRS furloughed thousands of employees after funding discussions stalled in early 2025. That means fewer people handling:
- Phone and correspondence support
- Paper return processing
- Refund and adjustment approvals
While e-filed returns are still being processed, manual reviews — such as amended returns, paper filings, and refund corrections — are seeing delays that could stretch into weeks.
DMV Businesses Hit Hardest
Small businesses and nonprofits that depend on timely refunds or credits are feeling the impact most.
Contractors waiting on Employee Retention Credit (ERC) adjustments or payroll-related refunds are experiencing significant delays, and even local tax offices across the DMV have reported slower document verification timelines.
How to Stay Ahead
To minimize the impact of IRS service interruptions:
- E-file everything. Electronic filing moves through faster and isn’t dependent on furloughed staff.
- Opt for direct deposit. Paper checks may sit in processing longer.
- Keep digital copies of submissions. Paper mail can backlog during shutdowns.
- Plan for delays. Build flexibility into your cash flow if you’re counting on a refund.
Shahbaz & Associates Tip
At Shahbaz & Associates CPAs, we’re monitoring IRS service levels daily and advising clients in DC, Maryland, and Virginia on the best filing strategies during the shutdown.
If you’re unsure whether to file now or wait, our team can help evaluate your situation and recommend the fastest, safest path forward.
If you need a trusted local CPA to help you file confidently — even during the chaos — contact Shahbaz & Associates CPAs. We’re here to support DMV taxpayers through every IRS season.