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Government shutdown seems likely

We are just to the start of tax season and the US federal government is going to shutdown.  For how long we don't yet know.

How will this impact the IRS and your tax returns?

The following activities will continue:
 

  • Processing of electronic returns up to the point of issuing a refund
    • This includes information returns due in January
  • Processing of tax payments to the IRS
    • You still have to pay payroll taxes and make estimated tax deposits
  • Processing of transcripts for disaster relief
  • Completion of filing year programs and software
  • 1099 and W2 forms still have to be issued by businesses before Jan 31

The following activities will stop:
  • Paper returns will only be processed to the point of batching and then processing stops
    • Basically that means paper returns will be marked as received and then sit.  So don't think you can file a paper return late and no one knows.
  • Refunds will not be issued
    • This will delay anyone waiting for a refund
  • Transcript requests not related to disaster relief will not be processed
    • If you have to request a transcript of your tax returns such as for a mortgage application, these requests will not be filled until the IRS reopens
  • Form 1040X-amended returns will not be processed
    • All processing for amended returns will stop for now. This includes amended business and payroll tax returns
  • Income verification will stop
    • Will impact anyone trying to get a mortgage or applying for a loan
  • Audit functions will stop
    • If you are currently being audited the audit will stop for now
  • Taxpayer services such as answering phone calls and questions will stop
    • It is not like it was easy to get someone to answer the phone at the IRS before, but now there won't be anyone answering at all.
Safeguarding the federal tax revenue stream is considered an essential function of the IRS. That means you still have to file returns and pay your taxes on time, even though much of the IRS will be closed.
Copyright © 2018 Rives CPA PLLC, All rights reserved.


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