Core Points - The federal government shutdown does not affect tax obligations, and taxpayers can receive an automatic six-month extension for filing their 2024 tax returns, moving the deadline to October 15 [1][2] - The IRS is currently operating with nearly half of its workforce, but automated filing processes minimize the impact of the shutdown on taxpayers [2][5] - Filers requesting an extension often have complex tax situations, making October 15 a new de facto deadline for many [2][3] Tax Filing and Penalties - Taxpayers must pay at least 90% of their tax obligation by April 15 to avoid invalidating the October 15 extension [3] - A penalty of 5% of the taxes due per month applies for delayed filing without a valid extension, capped at 25% [4] - If returns are not filed and taxes are unpaid by October 15, additional penalties apply, including a late filing fee [4] Impact of the Shutdown - Many taxpayers who file in October often receive refunds that can be applied to their quarterly estimated taxes, mitigating underpayment penalties for the following year [5] - Electronic filing and processing are expected to lessen the impact of the IRS shutdown on most returns [5] - Paper filers may face delays, but returns postmarked by October 15 will not incur penalties [6] Refund Processing - The IRS is mandated to pay interest on late refunds, which could increase costs associated with the shutdown if processing is delayed [7]