Talking Tax What Comes Next for the IRS and Tax After the Long Shutdown
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Nov 19, 2025 Join Zach C. Cohen, a Bloomberg Tax reporter who analyzes IRS operations and funding, alongside Erin Durkin, a Bloomberg Government health reporter focusing on healthcare subsidies. They discuss the impact of the recent government shutdown on the IRS, highlighting staffing uncertainties and substantial backlogs. Erin sheds light on the fate of pandemic-era premium tax credits, predicting a spike in average premiums if not extended. With potential legislative hurdles ahead, they unpack the chances of another shutdown looming around these critical subsidies.
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Shutdown Left Major IRS Backlog
- Half of the IRS was furloughed during October and faces a large backlog heading into the tax rule finalization window.
- That disruption will complicate implementing new tax law changes before filing season, Zach C. Cohen said.
IRS Attorney Sold Hot Dogs During Furlough
- Some furloughed IRS employees found temporary work, including one attorney who opened a hot dog stand.
- This illustrates potential attrition and financial strain among IRS staff after the shutdown, Zach C. Cohen noted.
IRS Funding Past Jan. 30 Is Uncertain
- Funding beyond Jan. 30 is uncertain because the government is on a short-term funding law and House Republicans seek IRS cuts.
- Staffing and implementation of the new tax law remain in flux pending appropriations, Zach C. Cohen explained.