“Refunds will be affected if the shutdown lingers for any significant period of time,” said Carla Gwinn who’s the general manager Liberty Tax.
The opening of tax season for the Internal Revenue Service is Jan. 29, but because of the government shutdown they the agency will have to continue to work on a limited or intermittent basis.
“Anyone that’s relying on their refund now may be experiencing deeper delays if the government doesn’t reopen,” said Gwinn.
During the shutdown the IRS will not conduct these functions:
- Service center processing after the point of batching (i.e. processing paper tax returns)
- Issue refunds
- Processing non-disaster relief transcripts, income verification express service/return and income verification services
- Process 1040x amended returns
- All audit functions, examinations of returns and processing of non-electronic tax returns that do not include remittances
- Non-automated collections
- Legal counsel
- Tax payer services such as responding to taxpayer questions (call sites)
Some IRS functions are automated. That means you can electronically file your return during the shutdown.
Gwinn said there is something you still have to do during the shutdown.
“If you do have tax obligations where you’re making estimated tax payments, employment tax deposits those are still required.”
Those functions can be made online.
The IRS added if the shutdown extends for more than five business days they will revisit and possibly change their functions.
The government shutdown also impacts all active duty troops, the Federal Bureau of Investigation, and TSA screeners.
None of them will be getting paid as long as this shutdown continues.