KEY TAKEAWAYS
- If the government shutdown lasts for another week, taxpayers who requested an extension to complete their 2024 tax return by Oct. 15 will likely face issues.
- Most IRS functions will continue through Oct. 7; afterward, non-essential functions of the tax agencies will be paused.
- During the previous government shutdown, taxpayers were unable to contact the IRS about any issues they encountered, and some experienced difficulties submitting electronic payments and paperwork.
If the government can’t secure funding by the Oct. 15 tax extension deadline, some taxpayers may run into problems.
Congress remains in a stalemate over health care cuts, and there is no expected end to the fight over government funding that has partially shut down the federal government. If the shutdown continues, taxpayers filing their returns will likely face delays in processing and communication with the IRS.
According to the tax agency’s shutdown contingency plan, the IRS has funding to continue most of its functions for five business days, which in this case ends at 12:01 a.m. ET Wednesday. However, if the government is still shut down on Oct. 8, the IRS must enter another stage of the contingency plan, which would likely shutter most of the agency.
Taxpayers who were unable to complete their tax return in April or were affected by a disaster, like the wildfires in California at the beginning of the year, were eligible for an extension of their filing deadline. About 19 million taxpayers likely applied to extend their filing deadline to Oct. 15, the IRS estimated earlier in the year.
Why This Matters to You
The government shutdown could soon affect the IRS, causing delays in processing and communication with the tax agency. If you are utilizing the extended tax filing deadline, you may want to submit your tax return and call the IRS with any questions by Tuesday, before its funding runs out.
During the last government shutdown, which overlapped with the beginning of the 2019 filing season, taxpayers’ ability to file taxes and contact the IRS was disrupted. Taxpayers filing their extended returns this month could experience similar issues, the American Institute of CPAs said in a letter to the IRS.
Some problems taxpayers could run into include if the shutdown lasts beyond Tuesday:
- Taxpayers who have questions about their tax return cannot get help from an IRS agent.
- The IRS website may be unreliable, making it harder to make electronic payments or submit online tax documents.
- Taxpayers may be unable to resolve disputes and may face penalties or receive automated IRS collection notices.
- Identity theft victims or taxpayers facing hardship issues cannot contact the IRS for help.
