To File, or Not to File, During A Shutdown

        With the IRS operating at 12% capacity, there are some concerns among taxpayers. Since this is the first tax year filing under using the TCJA, many may have questions to ask, but there are no employees to answer them. Until they are fully funded, the IRS will be limited to issues related to disaster relief, criminal investigations, and the critical employees who are required to keep the computers functioning. While this is an unusual state of affairs, it should not keep you from regular tax routine.

          Remember that the IRS is still partially open, and the computers are still being maintained. This allows for Tax Returns to be filed. This is especially true for businesses. Keep in mind that the Tax Cuts and Jobs Act made a massive overhaul for individual taxes (new forms, SALT deductions), and just a few adjustments to businesses. The IRS is now accepting Business Tax Returns by means of E-File, but relatively few organizations have that information right now.

          The IRS is always ready to take in your payments and completed forms. No matter how long this shutdown lasts, at some point they will be ready for individual Tax Returns. One problem that comes up will be regarding Tax Refunds. The more inactivity at the IRS, the farther Refunds will be pushed back. However, the breaking news announced yesterday that the IRS will issue refunds even if the government is shutdown can change this scenario. This is because by January 28 the IRS will be ready to accept Tax Returns for individuals. It’s not known exactly how this will work. What is clear is that we must still gather our information now and be prepared to file our completed tax documents.

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