Motivated by problems arising in the study of N=2 supersymmetric gauge
theories we introduce and study irregular singularities in two-dimensional
conformal field theory, here Liouville theory. Irregular singularities are
associated to representations of the Virasoro algebra in which a subset of the
annihilation part of the algebra act diagonally. In this paper we define
natural bases for the space of conformal blocks in the presence of irregular
singularities, describe how to calculate their series expansions, and how such
conformal blocks can be constructed by some delicate limiting procedure from
ordinary conformal blocks. This leads us to a proposal for the structure
functions appearing in the decomposition of physical correlation functions with
irregular singularities into conformal blocks. Taken together, we get a precise
prediction for the partition functions of some Argyres-Douglas type theories on
the four-sphere.