What does the government shutdown mean to the average taxpayer?

As most people know, the “non-essential” parts of the Federal government have been shut down due to lack of funding and budget compromise since December 22^nd.  With no immediate end in sight, what does this mean for your 2018 tax filings and potential refunds in 2019?

With the Tax Cuts and Jobs Act (TCJA), many more individuals and families were hoping for a larger tax refund this year.  Since about only 10% of the normal IRS staff is still active during the shutdown, that means refunds cannot be paid until the budget compromise is resolved. Thus, refunds could be delayed longer than usual.  Along with refunds, tax returns normally start to be accepted around the 3^rd or 4^th week of January.  With the TCJA, this was also expected to be slightly delayed due to the new 1040 form for all filers.  The shutdown could delay this process even further.  Also, the IRS cannot conduct audits during this time.  With all of this in mind, let’s hope for a speedy resolution!

Key list of functions that will impact taxpayers:

• No tax refunds issued
• No processing of non-disaster relief transcripts
• No processing of forms 1040X, amended returns
• No non-automated collections
• No audit or examinations (some exceptions apply)
• No legal counsel
• No call center during Non-Filing Season

Federal departments affected by shutdown

1. Agriculture
2. Commerce
3. Homeland Security
4. Housing and Urban Development
5. Interior
6. Justice
7. State
8. Transportation
9. Treasury

For federal employees OPM furlough guidance:

https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/

Federal government shutdowns since 1976:

Napcloud