How Does the Government Shutdown Affect Your Tax Situation?
Author: Scott Humphrey
The House and Senate were unable to come to an agreement by October 1 on a short-term spending bill to continue funding the U.S. government. Due to the lapse in appropriations, many federal government agencies halted or greatly reduced services. The IRS is not exempt from the shutdown, and significant portions of its operations have ceased until funding is restored.
You may think that since the government is shut down, you will not have to pay taxes or file your returns. In the famous words of ESPN college football analyst Lee Corso, “Not so fast, my friends!” The IRS announced that while the government is shut down, taxpayers still are required to file and pay taxes as normal. This includes individuals who requested an extension of time to file their 2012 tax return by October 15, 2013. The IRS also announced a listing of services that will be halted, including:
- Live telephone customer service
- IRS walk-in taxpayer assistance centers
- IRS examinations
- Appeals or Taxpayer Advocate meetings
- Processing of tax refunds
While the government shutdown is not expected to last long, it is still important to note the services not being provided during this time. For more information or questions on the government shutdown, please contact your BKD advisor.