Federal Shutdown

Federal Shutdown 101: So what happens with my taxes?

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Congress failed to come to a budget agreement in the late hours of September 30, forcing a mandated federal government shut down for “non-essential” services, or in real terms, mandatory furlough for thousands of government employees.

Services that aren’t impacted by the shutdown, or that are considered essential under the Anti-Deficiency Act, are those that protect life or property or that may be otherwise authorized by law. Examples of services that won’t be affected are Air Traffic Controllers, TSA and related security at airports, Department of Homeland Security, and Federal Courts, though if the shutdown lasts more than 10 days, Federal courts will begin furloughing non-essential employees.

The Internal Revenue Service, in its contingency plan for the shutdown, expects to furlough as many as 85,764 of its 94,516 employees.

Some of the services that are considered “non-essential” and that will be suspended or reduced during the shutdown include:

• Audits – IRS will suspend all audit activities during the federal shutdown. This means that during the shutdown, no new audits will be started, and any audits in process will be delayed.

• National Taxpayer Advocate – the Taxpayer Advocate’s office will be reduced to 45 essential employees during the shutdown out of over 2,000 employees,

• Customer service lines – the toll-free (800-829-1040) phone line to IRS will be shut down.check this site now!

Electronic filing will still be available, and processing of “balance due” tax returns submitted on paper will still be done. IRS will promptly cash your checks for any payments due, but you can expect any refunds to be delayed.

All statutory deadlines (due dates) will still be in place, so the October 15 extension due date is still a firm and solid date. Federal payroll taxes and tax forms must still be paid and filed on time, and estimated payments must still be submitted as required.

Any services related to implementation of the Affordable Care Act (“Obamacare”) will still be in place, as will the services related to protecting taxpayer data.

The special Practioners’ Priority Service, a phone line for tax professionals use only, will be shut down. Tax professionals “e-services” access, where your tax pro can pull up your tax transcripts and related account information, will be available. However, since IRS discontinued the online submission of Forms 2848 (Power of Attorney) and 8821 (Tax Information Authorization) earlier this month in a revamp of their e-services system, if your tax representative doesn’t already have one of these forms on file with IRS, you will have to wait until IRS processes a faxed or mailed-in copy of the form: a process that normally takes two to three weeks and will be further delayed during the shutdown.continue reading this:http://federalnewsradio.com/congress/2015/10/meadows-says-new-house-speaker-must-avoid-december-shutdown/

Federal Shutdown

Criminal Investigations division will see about 85% of its staff furloughed, and Collections division will also have a reduction in force, though probably not as high a percentage.

The staff that works on designing the tax forms and system programming for the upcoming filing season will remain on the job.

The IRS contingency plan covers the agency’s plan for a shutdown lasting no more than five days. If the federal shutdown lasts longer than that, IRS will reassess its plan and make any adjustments.

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