How does the government shut down affect the IRS and our firm?

About 88% of the IRS is shut down as part of the government shut down. What does that mean for taxpayers and our clients?

Deadlines.

It is still important to pay your quarterly estimated taxes on time and payroll timely. The shut down does not affect statutory time frames or statute of limitations deadlines. Also, even though the tax court is closed, petitions still must be timely mailed.

Collection efforts.

Automated letters will still likely be mailed. If a deadline is associated with the mailing, we work to preserve taxpayer rights by timely filing and mailing all petitions, responses and requests. Collection efforts assigned to local revenue officers may be delayed due to the shut down, but we will continue to work in preparation for resolution and settlement.

Audits.

We continue to work in preparation of audits as scheduled. While there may be a chance that the audits will be rescheduled, we are preparing for them to occur on schedule.
The IRS will continue to open the mail. There could be checks in the mail and they need to open it to find out and process payments. The IRS is also working to protect their interest with regards to expiring statute of limitations on collections and assessment. The IRS also continues to work to keep the computers on and running and to prepare for the upcoming tax season. Criminal Investigations also does not shut down. The IRS unit that processes 2848s and power of attorney representation forms is shut down. Consequently, it will be difficult to obtain transcripts for new clients or send in updated forms for current clients.

At Orlando Tax Law, we will continue to work the cases to the best of our ability. All important mail will still be sent via priority mail with tracking although we anticipate longer processing times by the IRS.

If you received an IRS letter and are unsure how the shut down affects you, please give us a call.