Government Shutdown: What Can Taxpayers Expect?

The federal government remains partially shut down. That means that funding for many government agencies has run out, including the IRS. As the tax filing season approaches, taxpayers may wonder how this will affect their tax returns and refunds.

The IRS will plan to keep 12.5% of the workforce as outlined in the Lapsed Appropriations Contingency Plan created by the Department of the Treasury. The plan explains the actions the IRS will take during the first five business days following a lapse in appropriations. The Department will let the remaining employees continue some functions in the short term, mainly those that are automatic.

The following is a list of some functions that will continue during the government shutdown:

• Processing electronic tax returns

• Processing of paper tax returns

• Processing disaster relief transcripts

• Upcoming tax year forms design and printing

• Mailing of tax forms

• Criminal law enforcement and investigation

The following is a list of some functions that will be put on hold during the government shutdown:

• Issuing of tax refunds

• Processing of non-disaster relief transcripts, income verification express service, or return and income verification services

• Processing of forms 1040X amended returns

• Non-automated collections

• Taxpayer services (call sites)

• Audit or examinations

If you have any additional questions or concerns about how you will be impacted by the government shutdown, please contact us.