The Government Shutdown: What It Means for Taxpayers
As the government shutdown continues, many taxpayers are beginning to feel its effects. With the IRS operating at reduced capacity, the processing of refunds, appeals, and amended returns has slowed considerably. For individuals and businesses waiting on correspondence or claim reviews, the resulting delays have created both frustration and uncertainty.
Most IRS functions outside of essential operations are currently paused. Examination and Appeals personnel have been furloughed, leaving limited staff available to review new filings or respond to pending matters. This means that mail sent to the IRS may sit unopened for weeks, and calls to service lines often go unanswered. Refunds related to credits such as the Employee Retention Credit and Research and Development Credit are among those most affected.
The shutdown has also caused an increase in automated IRS notices. These are generated by computer systems that continue to run even when employees are not available to review them. As a result, taxpayers may receive balance-due or non-response notices that cannot be immediately resolved. Keeping organized records and copies of all submissions is essential to ensuring these matters can be corrected once full operations resume.
For those under examination or appeal, deadlines for filing responses and protests have not been suspended. Taxpayers should continue preparing and submitting materials on time, using certified mail or approved electronic methods to preserve proof of filing. Missing a statutory deadline could forfeit important rights once the IRS reopens.
When the government eventually resumes normal operations, a large backlog is expected. Based on prior shutdowns, the IRS will likely prioritize clearing notices and correspondence before turning to delayed examinations and appeals. Taking steps now to stay organized and aware of deadlines will make it easier to respond quickly when communication begins again.
Strategic Tax Planning is monitoring IRS developments daily and maintaining communication channels with agency contacts whenever possible. Our team is ready to help you track your filings, manage deadlines, and navigate the uncertainty caused by the shutdown. Contact our team at (202) 455-6010 or schedule a confidential consultation today.
