SMT & Associates Tax and Accounting

GOVERNMENT SHUTDOWN; WHAT IT MEANS FOR YOU!

We have received an extensive amount of calls and concerns regarding the impact of the current U.S. Government Shutdown and want to share with you the immediate impact information we have received.

Numerous government agencies will be impaired since Congress failed to pass an operating spending bill.

There will be a mandatory furlough of non-essential governmental employees, so many government offices and services operations will be impacted. Many federal agencies and departments will be reduced to essential services only including the IRS.

Currently certain agencies will continue to operate, this includes the U.S. Postal Service, Social Security Administration, Veterans Administration, Medicare and Medicaid programs. This means that mail will continue delivery, Social Security checks will be disbursed, medical services will be provided for veterans and those receiving benefits of Medicare and Medicaid. The Transportation Security Administration will continue to operate but due to the mandatory furlough of non-essential government employees TSA may incur staff reductions that will impact air travel.

What this means for you and your taxes! All prevailing tax law remains in affect and all taxpayers remain obligated to meet all tax obligations as normal.

The IRS will need to continue processing activities to the extent necessary to protect government property and assets which includes the collection of tax revenue which maintains the integrity of the Federal tax collection process and will continue certain other authorized activities under the Anti-Deficiency Act.

Both individuals taxpayers and business taxpayers remain responsible for timely filing and timely payment of tax obligations including estimated tax payments, payroll taxes payments etc. No extensions apply due to the Federal Government Shutdown.

If you are subject to a Direct Debit Installment Agreement, know that the U.S. Department of the Treasury will continue those withdrawals on the specified dates of the prior agreement.

If you are subject to an Agreed Estimated Tax Payments Direct Debit, know also that the U.S. Department of the Treasury will continue those withdrawals on the specified dates.

Some significant delays you can expect due to IRS furlough of non-essential employees includes:

IRS tax refunds issuing will be delayed!

Scheduled IRS examinations, audits and appeals functions will recognize delays, but this does not mean that they will not transpire. Taxpayers subject to examination, audit or appeals actions remain obligated to stated compliance dates. If you have received an IRS Notice of pending action, please contact us immediately to resolve these issues. IRS offices, service centers and call centers will be shut down and not responding to taxpayer questions.

U.S. Tax Court has informed us that trials sessions currently scheduled for the week of January 22, 2018 will proceed at the scheduled trial locations. The Court expects that all trial locations will be accessible for use during the week of January 22nd. U.S. Tax Court anticipates continuing normal operations for as long as funding permits. They will provide us further guidance on the status of future scheduled trial dates.

The filing of your 2017 income tax returns remains subject to the current filing deadlines for all returns types. There will be no extension to the current filing deadlines. However, the IRS service centers will currently only be processing returns to the point of batching whether the returns are electronically filed or paper filed.

The filing of amended Form 1040X returns will be delayed.

If the Government Shutdown extends beyond five business days, the IRS will be reassessing mandatory activities and the impact of diminishment to non-essential activities and will provide us with further guidance we will share with you as soon as possible.

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