Legal Tax Defense advises individuals and small businesses to act quickly as delays in IRS processing threaten refunds and resolution timelines.

LOS ANGELES, CA, UNITED STATES, November 19, 2025 /EINPresswire.com/ -- With the Internal Revenue Service facing a projected two- to three-month backlog in processing returns and correspondence after the longest U.S. government shutdown in history, Legal Tax Defense, Inc. is urging taxpayers to prepare for significant delays. The national law firm, which specializes in IRS and state tax resolution, warns that the service disruption could affect everything from refunds to ongoing audit and collection cases.

During the shutdown, thousands of IRS employees were furloughed, leaving a mountain of unprocessed mail, appeals, and taxpayer responses. Although the agency has resumed operations, staff are now managing months of accumulated cases while also handling new filings for the 2025 tax year.

“The system is simply overwhelmed,” said Sharon Goldstein-Shapiro, spokesperson for Legal Tax Defense. “Taxpayers waiting for refunds, installment approvals, or audit resolutions are seeing long delays. Some assume silence means their issue is resolved, but that’s a costly mistake.”

The firm cautions that while IRS communications may be delayed, enforcement actions such as liens and wage garnishments can still resume once cases reach active status. Legal Tax Defense recommends that taxpayers continue meeting all filing deadlines and maintain documentation of any correspondence sent during the shutdown period.

According to Goldstein-Shapiro, the backlog also complicates cases for those seeking penalty abatements or offers in compromise. “When you submit documentation or payments, it can sit in a queue for weeks before anyone reviews it,” she said. “Meanwhile, penalties and interest continue to build.”

Legal Tax Defense advises taxpayers facing unresolved issues to take the following steps:

• Confirm delivery of any mailed IRS correspondence through certified tracking.
• Keep copies of all letters, notices, and payment confirmations.
• Avoid assumptions. A lack of response does not mean your case is closed.
• Seek legal assistance if a levy, lien, or wage garnishment is pending to ensure protections remain in place while processing catches up.

The firm’s attorneys are also seeing increased confusion among self-employed individuals and small businesses that rely on prompt communication with the IRS for payroll or estimated tax adjustments. “For small businesses, a two-month delay can disrupt cash flow and planning,” Goldstein-Shapiro said. “Having professional representation ensures your case is documented and prioritized once review resumes.”

As the IRS works through the mounting caseload, Legal Tax Defense emphasizes that early action remains the most effective way to prevent long-term complications. “Even during a government slowdown, taxpayers are not powerless,” Goldstein-Shapiro said. “Understanding your rights and keeping a paper trail can save months of frustration later.”

For assistance with active IRS or state tax matters, or to schedule a free consultation, visit www.legaltaxdefense.com.

Sharon Goldstein-Shapiro
Legal Tax Defense, Inc.
+1 800-804-2769
[email protected]
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