TAX TIP TUESDAY: IRS Announces Impact of Government Shutdown

Due dates remain the same. All filing due dates remain unchanged. Partnership and S-corp tax returns are still due March 15, 2019. And C-corp and individual tax returns are due April 15, 2019. The deadline to make IRA and HSA contributions for 2018 stays at April 15, 2019.

Penalties and interest are payable in full. The lapse in IRS operations does not change or delay the requirement that you need to make payments by the normal due date. If a late payment was outstanding during the shutdown, there are no special abatements available. If you were unable to make a payment due to a taxpayer assistance center being closed, you can file a request to waive the penalty.

Audit activities will eventually resume…eventually. Whether you are in the beginning, middle or end stages of an audit, the answer is the same — once the auditor is able to review their mail and get caught up on administrative tasks, they will re-establish contact. If you sent documents during the shutdown, they will review them and connect with you. If you had an appointment during the shutdown, they will reschedule.

Response time requirements are unchanged. Often taxpayers get correspondence from the IRS that requires a response within a set time frame. The windows for required action are often 10 days for audit reports, and 30 days for letters. The shutdown DOES NOT stop this clock. Send your response as it was originally scheduled.

Overall, the recent IRS message communicates that it’s business as usual, but it will take several days to work through what was piled up during the shutdown. If you’re waiting on an IRS response, add 35 days to your typical wait time. Please call 805-496-2828 if you have any questions or need help dealing with an IRS issue.