Government Shutdown Effect on IRS and Tax Court

by | Jan 21, 2019 | Audit, Internal Revenue Service, Tax Litigation

Government shutdown

The government shutdown has had a significant impact on the tax administration, including important IRS functions and U.S. Tax Court’s operations.  Here’s a short summary of the shutdown effect on the most important functions:

 

Internal Revenue Service

  • Filing Season. The IRS has announced that the 2019 filing season will begin on Jan. 28, 2019, for individual taxpayers. The IRS began accepting business tax returns (non-1040 series) on Jan. 8.
  • Tax Returns. The IRS will accept paper and electronic tax returns, but taxpayers are urged to file electronically to speed processing and refunds.
  • Tax refunds. Refunds will be paid, but the IRS cautions that returns will continue to be subject to refund fraud, identity theft and other internal reviews as in prior years. Taxpayers should use e-file or Free File with direct deposit to help speed refunds.
  • Automated applications. IRS.gov and many automated applications remain available, including such things as Where’s My Refund, the IRS2go phone app and online payment agreements.
  • Telephones. No live telephone customer service assistance is currently available, although the IRS will be adding staff to answer some of the telephone lines in the coming days. Due to the heavier call volume, taxpayers should be prepared for longer wait times. Most automated toll-free telephone applications will remain operational. The IRS encourages people to use IRS.gov for information.
  • In-person service. IRS walk-in taxpayer assistance centers (TACs) are closed.
  • Appointments. While the government is closed, people with appointments related to examinations (audits), collection, Appeals or Taxpayer Advocate cases should assume their meetings are cancelled. IRS personnel will reschedule those meetings at a later date, when the IRS reopens.
  • Taxpayer correspondence. While able to receive mail, the IRS will be responding to paper correspondence to only a very limited degree during this lapse period. Taxpayers who mail in correspondence to the IRS  during this period should expect a lengthy delay for a response after the IRS reopens due to a growing correspondence backlog.
  • Tax-exempt groups. The IRS will not be processing applications or determinations for tax-exempt status or pension plans.
  • Enforcement activity. During this period, the IRS will not be conducting audits, but automated initial contact letters will continue to be mailed. No collection activity will generally occur except for automated collection activity. For example, automated IRS collection notices will continue to be mailed.
  • Criminal Investigation. Criminal Investigation Division will continue during the shutdown.
  • Passports. The IRS will not be certifying for the State Department any individuals for passport eligibility.

United States Tax Court

  • The United States Tax Court shut down Friday, December 28, 2018, at 11:59 p.m. and will remain closed until further notice.
  • The trial sessions scheduled in the following cities for the week of January 28, 2019, are canceled:
    • El Paso, Texas – Judge Elizabeth A. Copeland
    • Los Angeles, California – Judge Patrick J. Urda
    • New York, New York – Judge Joseph H. Gale
    • Philadelphia, Pennsylvania – Special Trial Judge Diana L. Leyden
    • San Diego, California – Special Trial Judge Peter J. Panuthos
    • Lubbock, Texas – Judge Elizabeth A. Copeland
  • The trial sessions scheduled in the following cities for the week of February 4, 2019, are canceled:
    • Hartford, Connecticut – Judge Kathleen Kerrigan
    • Houston, Texas – Judge David Gustafson
    • San Francisco, California – Judge Albert G. Lauber
    • Seattle, Washington – Judge L. Paige Marvel
    • St. Paul, Minnesota – Special Trial Judge Daniel A. Guy, Jr.
    • Washington, District of Columbia – Judge Robert P. Ruwe
    • Winston-Salem, North Carolina – Judge Joseph W. Nega
  • The trial sessions scheduled in the following cities for the week of February 11, 2019, are canceled:
    • Detroit, Michigan – Judge Ronald L. Buch
    • Los Angeles, California – Judge Joseph Robert Goeke
    • New York, New York – Judge James S. Halpern
    • San Diego, California – Judge Michael B. Thornton
    • Mobile, Alabama – Judge Mary Ann Cohen