Q&A on the Impact of the Government Shutdown on IRS and Tax Administration

To our valued clients and associates:

As a result of the government shutdown, the IRS will only maintain core functions such as return processing. Filing deadlines remain untouched and payments are still due in a timely manner. The AICPA Tax Section created a Questions and Answers page to help practitioners with related challenges in filing returns and representing clients (e.g., collections, notices, ongoing examinations, etc.). This page will be updated as more information becomes available from the IRS.

According to the IRS's contingency plan released Sept. 27, the following activities will cease during the shutdown:

• Refunds
• Examinations
• Operation of taxpayer services and centers
• Operation of the Practitioner Priority Service
• Processing of paper returns that do not require remittance

The closure of taxpayer and practitioner hotlines is particularly challenging for those individuals who must file a Form 1040 by Oct. 15 and need to contact the IRS. The plan does authorize several functions to continue, including processing of electronic returns, building security, certain computer operations, criminal law enforcement, and the protection of bankruptcy, lien and seizure cases.

We will continue to monitor how the shutdown affects our clients As this shutdown is the first in 17 years, it will be uncharted territory for many agency personnel who are working to sort out the details.

Best regards,
Darren L. Neuschwander, CPA
Managing Member of Green NFH, LLC
Head of Tax Compliance