Compliance
IRS Resumes Audits & Collections After Shutdown: Compliance and What Businesses Need to Do
With IRS operations restarting after the federal shutdown, filings, notices, audits and collection actions are back in motion—time to clean up compliance gaps.
By NomadicTax Research Team • 5-8 min read • November 23, 2025
## Context and Status
In mid-November 2025, the IRS resumed full audit and collection operations following the U.S. federal government shutdown. Employees returned on **November 13**, and since then are working through backlog of mail, review tasks, audits, collection cases, and notice correspondence.([irs.gov](https://www.irs.gov/newsroom/november-2025-exam-resumption-faqs?utm_source=openai))
Publications clarify that actions such as audit notices and collection due process hearings paused during shutdown are now again active. Deadlines were not reset by the shutdown—tax law requirements remain continuous.([irs.gov](https://www.irs.gov/newsroom/november-2025-collections-resumption-faqs?utm_source=openai))
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## What You Need to Know for Your Business or Personal Taxes
### Registered Entities & Taxpayers
- If you have been asked to submit documents to an auditor, examiner, or Revenue Officer during the shutdown, resubmission or confirmation may be required now.([irs.gov](https://www.irs.gov/newsroom/november-2025-exam-resumption-faqs?utm_source=openai))
- If you filed responses or reports during the shutdown, expect the IRS to verify receipt and may reach out to confirm deliverables.([irs.gov](https://www.irs.gov/newsroom/november-2025-exam-resumption-faqs?utm_source=openai))
### Penalties, Filing, & Payment
- Returns and payments that were due during the shutdown are still due—penalties or interest may apply unless you can request abatement for “reasonable cause,” especially if inability to file was shutdown-related.([irs.gov](https://www.irs.gov/newsroom/november-2025-collections-resumption-faqs?utm_source=openai))
- Notices of deficiency mailed during the shutdown still allow 90 days for petitioning the Tax Court—no extension simply because of the shutdown.([irs.gov](https://www.irs.gov/newsroom/november-2025-collections-resumption-faqs?utm_source=openai))
### Communication and Rescheduling
- Audit or collection appointments cancelled during shutdown are now being rescheduled. Examinees and taxpayers should await contact from the relevant IRS representative.([irs.gov](https://www.irs.gov/newsroom/november-2025-exam-resumption-faqs?utm_source=openai))
- If you missed deadlines or had correspondence delayed, prepare explanation and documentation to support reasonable cause requests.([irs.gov](https://www.irs.gov/newsroom/november-2025-collections-resumption-faqs?utm_source=openai))
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## Practical Steps to Be Audit-Ready
- Conduct internal review of any outstanding document requests or questionnaires — gather whatever you can in advance.
- Consult a qualified tax professional to evaluate whether filing or payment penalties are unavoidable or abatable.
- Maintain detailed records of shipping, filings, or correspondence particularly during the shutdown period to support any claims.
- Update your contact info with IRS, especially if physical address or mailing address changed while parts of IRS were non-operational.
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## If You’re a Practitioner or Adviser
- Monitor resumption notices from IRS, keep track of case status via their Online Account.
- Be proactive—notify clients whose audit or collection notices got disrupted by shutdown.
- Review whether installment agreements or payment plans were paused or delayed—ensure they are honored and properly documented. Documentation will help avoid future disputes.
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## Why This Matters
Compliance lapses during shutdown could trigger penalties or interest. Though taxpayers may qualify for relief, documentation and timely response will be key. For businesses, staying in front of audit or collection issues prevents bigger liabilities, reputational damage, or cashflow surprises. Ensuring compliance now sets the stage for smoother operations in tax year 2026.