While IRS is threatening furloughed employees with making them go without back pay, it has told exempted employees—those who continue to work because their salaries are paid through means other than annual appropriations—that they will receive their paychecks on time, according to messages reviewed by Government Executive.

Missing IRS deadlines can carry financial consequences. Failure to file and pay a tax return on time can result in a penalty of 5 percent of taxes owed for each month or partial month the return is late.

Workers at the Internal Revenue Service, who were previously exempted from furloughs because their work is considered necessary, have started to receive furlough notices. According to a revised shutdo

Preparations for next tax season look likely to continue, even as the Internal Revenue Service began furloughing almost half its workforce.

Generally, after September 30, 2025, the Treasury Department has said that all federal agencies will cease sending and receiving paper checks as a form of payment. In general, all federal agencies will phase out sending and receiving paper checks after the September 30 deadline. This includes: