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How does government shut down effect my tax return?

April 8, 2011

What does the government shutdown mean to me regarding my taxes? Well, any taxes that are filed electronically will be processed as usual. There will be no delays with your return regardless of whether they are going to direct deposit the money into your account or mail you out a check. The IRS will; however, stop processing any paper returns. Paper returns would include anyone who mailed in their return, any amended return, or any work does on those being audited who submitted addition information that the IRS requested. Most of those who are audited are those for Earned Income Credit. They are asked to prove they are related to the children that they claimed and that they meet the residency requirement proving that the children lived at the same address. A lot of others are audited on Schedule C information. They are asked to prove income and expenses. My experience is that the turnaround on anything mailed to the IRS is about six to eight weeks.  If you call them they will tell you about sixteen weeks, but I believe that they do that so that taxpayers simply do not call them back. So if you are concerned about the shutdown, alleviate any stress by simply electronically filing your return. The April 18 filing deadline for Form 1040 returns remains in effect. Tax payments will be processed as usual. Taxpayers who have an appointment scheduled with the IRS (audit, collections, appeals or Taxpayer Advocate cases) during the period of the shutdown should assume the appointment has been canceled. These appointments will be rescheduled when normal IRS operations resume.

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