The Government Shutdown and the IRS

A large number of IRS employees have been furloughed at a pretty inopportune time. The unusually-complex and rushed tax law changes are already pushing tax season’s opening day into the future (no date yet announced, and it’s already January 4th), and the government shutdown is making it worse.

The IRS has listed a series of activities that will continue to be conducted on a limited or intermittent basis. Per the NATP, those that directly affect tax preparers and our clients include:

  • Completion and testing of the upcoming Filing Year programs
  • Processing of returns with payments
  • Processing remittances including payment perfection
  • Processing disaster relief transcripts
  • Design and printing of tax forms

The following activities will be furloughed and will NOT be conducted:

  • Issuing refunds
  • Processing non-disaster relief transcripts, income verification express service/return and income verification services
  • Processing 1040X, amended returns
  • All audit functions, examination of returns and processing of non-electronic tax returns that do not include remittances
  • Non-automated collections
  • Legal counsel
  • Taxpayer services such as responding to taxpayer questions (call sites)

This short, interesting article from MarketWatch outlines some of the unfortunate results of furloughing so many IRS employees: 3 unfortunate ways the government shutdown will impact you – MarketWatch

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