IRS Shutdown

​As the government shutdown continues on, I thought it could be helpful to look at what it means from a tax perspective.

First, remember that this is only a federal government shutdown. So if you have any state or local tax questions, start with knowing nothing has changed there.

Next, even as we will see that the IRS is not actively doing all the work that the agency is tasked with, it still expects all taxpayers to come through with their obligations. If you owe any taxes, are late on any filings, are on a payment plan, need to make quarterly estimates, etc., then these are still expected to be completed on time.

Unsurprisingly, there’s not a lot of good news during this time. In fact, the only small bit is that in a recent advisory the IRS said, “For taxpayers filing a Form 1040, refunds will continue to be paid on electronically filed, error-free tax returns that can be automatically processed and direct deposited.” This is nice for some people who just needed a little extra time to get their latest tax return in and did so on the extended deadline earlier this month, but most people filing recently aren’t of that simple 1040 variety so will be waiting for the processing of their return and any payment they expect to receive.

Beyond that, a lot of dealing with the IRS will be even more of a burden than it usually is. Most automated toll-free telephone applications will remain operational but live telephone customer assistance will be limited (after it can already feel limited even in the best of times).

All the agency’s walk-in Taxpayer Assistance Centers will be closed. All appointments at the TAC will be canceled until the government reopens.

Also, all appointments related to the Independent Office of Appeals or Taxpayer Advocate Service cases are canceled while the government is shut down. The IRS will reschedule the meetings when the government reopens.
​Warmly,

Josh Bousquet
Connect to Us ~ Facebook ~ X