Government Shutdown Continues to Affect IRS Operations

Government Shutdown Continues to Affect IRS Operations
According to the IRS website, "all taxpayers should continue to meet their tax obligations." Regular filing deadlines will remain in effect during the shutdown. Individuals and businesses are encouraged to file electronically because those returns will be processed automatically. Paper returns will not be processed until full government operations resume but still must be postmarked by the deadline. On the other hand, tax refunds will not be issued until operations return to normal.

Live telephone customer service agents have been furloughed and the IRS's walk-in taxpayer assistance centers are closed. The Taxpayer Advocate Service is also closed. Tax audits are also not considered essential and are suspended until the shutdown comes to an end.

For more information on the government shutdown click The shutdown, the IRS and your taxes.

In preparation for a possible shutdown, the IRS on September 26 released a shutdown contingency plan that describes agency actions and activities for up to five business days during the shutdown. If the shutdown lasts longer than five business days, the deputy commissioner for operations support will reassess IRS activities and make any needed adjustments to personnel.

According to the IRS, no live telephone customer service assistance will be available; however, most automated toll-free telephone applications will remain operational. IRS walk-in Taxpayer Assistance Centers will be closed.

While federal government offices are closed, people with appointments related to examinations (audits), tax collection, and appeals or Taxpayer Advocate Service cases should assume their meetings are cancelled. IRS personnel will reschedule those meetings at a later date.

During the shutdown, automated IRS notices will continue to be mailed; however, the agency will not be working on any paper correspondence during this period.

How Does Federal Shutdown Affect Taxpayers?
The IRS provided the following basic steps that taxpayers should follow during the shutdown:

• Taxpayers should continue to file and pay taxes as normal. Individuals who requested an extension of time to file should file their returns by October 15, 2013.
• All other tax deadlines remain in effect, including those covering individuals, corporations, partnerships, and employers. The regular payroll tax deadlines also remain in effect.
• Taxpayers can file their tax returns electronically or on paper – although the processing of paper returns will be delayed until full government operations resume. Payments accompanying paper tax returns will still be accepted as the IRS receives them.
• Tax refunds will not be issued until normal government operations resume.
• Tax software companies, tax practitioners, and Free File will remain available to assist with taxes.

The IRS also provided a list of services that will be available, albeit limited, until the shutdown is over:

• For taxpayers seeking assistance, only the automated applications on the regular (800) 829-1040 telephone line will remain open.
• The IRS website will remain online, although some interactive features may not be available.
• IRS Free File partners as well as tax software companies will continue to accept and file tax returns.

The IRS said in a Web page about the shutdown that it is not sending out levies or liens, either those generated systemically or those manually generated by employees.

References:  

accountingWEB Jason Bramwell
accountingWEB Michael Cohn 
CNN Money