Government Shut Down: What Happens to the IRS and Taxpayer

As we wake up just a couple days before Christmas, the Federal Government has been shut down due to a lapse of funding because an agreement was not made. Partisan politics aside, what does this mean for you, the taxpayer?

What we know is that part of the IRS will continue to function such as working with software companies to test the upcoming tax year software. It will also include processing electronic returns and tax returns that were mailed in (however mailed returns will be delayed most likely). Of course, criminal investigations will also continue. There are also a great deal of important activities that will cease upon the government shutdown. These activities include:

• Issuing Refunds

• Processing Amended Tax Returns

• Audits and Examinations

• Tax Returns Mailed in with an Anticipated Refunds

• Taxpayer Services (such as call in customer services and knowledge centers)

• Processing of Non-Disaster Relief Transcripts

The shutdown means that 79,868 IRS employees will be furloughed. However, once a deal is reached, employees are expected to return to work within four hours if it fall on a business day.

Jacobson Clergy Tax Service will continue to keep you up to date on these matters.