IRS Shutdown Contingency Plan: What Happens to Your Taxes?

The IRS's contingency plan reveals a reliance on IRA funds to mitigate the immediate effects of a government shutdown. The plan states that for the first five business days, all IRS employees will continue to report to work. However, the long-term implications of a prolonged shutdown are concerning.

The previous government shutdown in 2018-2019 resulted in a backlog of millions of unanswered pieces of mail and significant delays in processing tax returns. The National Taxpayer Advocate warned that it could take at least a year for the IRS to return to normal operations.

The National Treasury Employees Union (NTEU) has expressed concerns about the impact of shutdowns on federal employees, who may face financial hardship due to unpaid work. NTEU has urged Congress to reach a compromise to avoid a shutdown and ensure that federal employees can continue to serve the public without disruption.

Will my tax filing deadline be extended during a government shutdown?

No, tax filing deadlines are not expected to be extended. Taxpayers should continue to meet their obligations, even during a shutdown.

How will a government shutdown affect IRS services?

For the first five days, services should continue as normal. After that, many services may be suspended or delayed due to employee furloughs.

Will IRS employees be paid during the shutdown?

IRS employees will be paid for the first five days of the shutdown. After that, they may be furloughed and not receive pay until the shutdown ends.

Here's what you need to remember:

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