Government shutdowns at any time can be a cause for concern. That is even more true during tax filing season. Though the timing and likelihood are uncertain, Internal Revenue Service (IRS) operations will be affected.
Let’s take a moment and examine how a shutdown could affect you.
Tax Filing Timing
During a government shutdown, remember that all tax obligations remain in effect. This means that taxes are still due (including estimated payments and payroll), and tax returns should be filed according to the usual deadlines. Likewise, you shouldn’t wait to send your records and data to your CPA.
Given the potential for reduced IRS taxpayer services during the shutdown, we strongly recommend filing your taxes electronically. This method is more efficient and can help avoid potential delays in processing. Using electronic payment methods may help reduce the likelihood of lost mail and payments.
Reaching the IRS by phone will likely be challenging during the shutdown. You may still receive automated letters from the IRS. It is important to notify your CPA about any communication you receive, even if received during the shutdown.
IRS examinations will likely be paused during the shutdown period. Work with your CPA and the IRS agent to make sure deadlines are considered and appointments are rescheduled, as necessary.
Quality Preparation, Successful Outcome
The potential impacts of a government shutdown can’t be eliminated completely. Ideally, a shutdown will be avoided altogether. Keep the considerations listed above in mind as we approach the start of tax filing season.
The professionals at Sovereign CPA in Birmingham, AL, will continue business as usual despite the strain a government shutdown will cause. Our CPA services are all centered on providing efficient, clear results for our clients. Reach out online or by calling (205) 402-4245, and let’s work together to minimize any disruptions this tax season.