Article Summary

**US Government Shutdown Disrupts IRS Crypto Tax Operations as Bitcoin Market Watches** The ongoing US government shutdown has significantly impacted cryptocurrency tax services, with the Internal Revenue Service (IRS) furloughing nearly half its workforce and scaling back operations dramatically. This development creates uncertainty for Bitcoin traders, DeFi investors, and blockchain companies preparing for the upcoming tax season. The IRS shutdown affects critical cryptocurrency compliance services, potentially delaying tax guidance updates, audit processes, and regulatory clarifications that digital asset investors rely on. With the agency operating at reduced capacity, crypto tax reporting deadlines and processing times may face extended delays, impacting millions of cryptocurrency holders. Market analysts suggest this disruption could influence Bitcoin price volatility as investors navigate tax uncertainty. DeFi protocols and cryptocurrency exchanges are advising users to maintain detailed transaction records despite the federal agency's limited availability. The shutdown particularly affects businesses involved in blockchain technology, mining operations, and digital asset trading who require IRS guidance for proper tax compliance. Cryptocurrency investors should prepare for potential delays in tax-related inquiries and refund processing while monitoring how this government disruption impacts broader digital asset market sentiment.