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Volume 2; IRS During a Government Shutdown

Posted by Admin Posted on May 11 2015
What Happens at the IRS During a Government Shutdown           

By Sophie Beckmann, CPA, CFP

On October 16, after a government shutdown that lasted 16 days and almost resulted in national default, Congress passed legislation that provided for government funding at current levels until January 15, 2014, and raised the nation’s borrowing limit through February 7, 2014. The result was the reopening of all government agencies on October 17.

The IRS was one of those government agencies that had been closed for 16 days. So what happened during the IRS shutdown? The IRS accepted the filing of tax returns and tracked the timeliness of those filings, but did not process any of them, resulting in the delay of expected refunds. While IRS computer-generated notices were still sent, the issuance of liens and levies and enforcement actions was limited to only those that could not be postponed without compromising the government’s interest. Even the ability to obtain tax transcripts was limited to only individual taxpayers and no third parties.

And, to top it all off, the IRS just announced that the shutdown came during the peak period for preparing computer filing systems for 2014. Because of the down time, the 2014 tax filing season will be delayed by two weeks, from a start date of January 21 to a date sometime between January 28 and February 4. The result is that tax return processing – and the issuance of refunds – will be delayed.

Because the new legislation is only temporary, we may face another IRS shutdown just as the 2013 tax filing season gets underway, which could affect many more taxpayers than the most recent closure did.

For more information on what happens when the IRS is closed due to a government shutdown, please call our office at 314-726-0324.
What’s New With Us

B&R Team at Crown Candy KitchenBecker and Rosen CPAs, LLC has been granted two awards
from Small Business Monthly:

  • Best in Value, 2013, see us on the list here.
  • Winning Workplace, 2013, find our feature in the November issue of Small Business Monthly  

Our own Jodi Vogt, CPA will be getting married this month. Congratulations Jodi & Curtis!

The firm celebrated the end of our fall tax season rush by lunching at the Crown Candy Kitchen. Delicious treats were enjoyed by all!