Curious about the impact of a prolonged government shutdown?
There is nothing to worry about at this point. The IRS has not officially opened the tax filing season, which typically starts the second or third week in January. Employers and investment companies have not provided the 2018 tax forms required for you to file a return. These tax documents are usually provided toward the end of January.
We recommend preparing and filing your returns as you normally would. Filing the returns electronically would be better since the return is processed quicker. Processing an electronic return requires fewer IRS personnel. If you are preparing a manual return, it may take longer to process the return since IRS personnel are not available to input the data or answer taxpayer questions. These returns may be backlogged for some time before IRS personnel can get to them. We suggest getting your manual tax return in early so that when the government reopens, your return could be processed earlier than had you waited for the government to reopen.
Essential personnel would likely be called back to work to process electronic tax returns and returns with payments. Essential personnel would be those necessary to protect government property. Tax payments to the government would be considered government property.
A similar situation happened last year, but the shutdown was lifted by the time the IRS would have processed tax returns. Please contact us with any questions at 401-831-0200.