The IRS e-file system for individual returns is scheduled to reopen on Monday, January 29, 2024. And here’s the real kicker—if fewer people file, the government essentially gets to keep more of the money that was supposed to be refunded. The sad reality is that if you don’t file your return, you leave yourself open to an indefinite audit. Meanwhile, if you’re owed money, you only have a three-year statute of limitations to claim it.” For lower-income communities that rely on these brick-and-mortar services and don’t have access to traditional electronic filing, this will force them to turn to private services, which may not be cost-effective for them. Fewer people filing their taxes this year, either due to confusion or lack of access.

Production and ATS limited services: August 23, 7 a.m. – 8 p.m. ET

By being aware of the IRS e-filing shutdown dates for 2022, taxpayers and tax professionals can plan their tax filing activities accordingly and ensure a smooth and timely submission of their tax returns. By understanding and keeping track of the IRS e-filing shutdown dates, taxpayers and tax professionals can proactively manage their tax filing process and minimize any potential disruptions or delays. This knowledge allows for better planning and ensures a smoother tax season experience. During these shutdown periods, taxpayers can still prepare their returns using tax software, but they will need to wait until the e-filing system is back online to submit their returns electronically. Alternatively, taxpayers can choose to file their returns on paper during the shutdowns, which may result in longer processing times.

• California currently has the most IRS offices slated for closure, with seven locations affected.
• We cannot close your business account until you have filed all necessary returns and paid all taxes owed.
• Last year, IRS Commissioner Danny Werfel said, by using the IRA funding, the IRS has made an immediate, meaningful difference in how it serves taxpayers, including hiring new employees.
• The continuing resolution largely funded most programs and activities at the fiscal year 2024 levels, with some exceptions.
• Critical IT system functions that are necessary to protect taxpayer data will continue.
• Stay informed with the latest updates on IRS e-filing deadlines and ensure your finances are in order.

IRS should be more transparent when communicating phone service metrics, report says

In 2022, Congress passed the Inflation Reduction Act—it was signed into law by President Biden on August 16, 2022. As part of the Inflation Reduction Act, Congress provided an additional $80 billion in funding to the IRS over ten years. Most of this money was earmarked for enforcement, while other dollars focused on improving technology and customer service.

Profits interests: The most tax-efficient equity grant to employees

• Traditionally, CRs have been used to give lawmakers a short period of time to complete their work on remaining appropriations bills while keeping the government open.
• The IRS is planning to furlough most of its employees, if lawmakers don’t avert a government shutdown by the end of the week.
• The IRS accepts e-file of individual and business returns for the current year tax return and the two prior years through the MeF system (Modernized e-File system).
• Overall, IRS e-filing is a convenient and efficient way for taxpayers to submit their tax returns and receive refunds.

He also notes the General Services Administration (GSA) has previously reversed federal office sales and has stated it will review these closures on a case-by-case basis, meaning fewer offices may ultimately close. He goes to state while irs activities following the shutdown most affected locations appear to be Taxpayer Assistance Centers, the GSA has said it will not prioritize shutting down public-facing facilities. Upon issuance of the OMB plan, this memorandum shall expire for all executive departments and agencies, with the exception of the Internal Revenue Service (IRS).

To avoid a shutdown, Congress must approve a budget for fiscal 2024 or a continuing resolution that keeps the government operating temporarily by Saturday, Sept. 30. The IRS, in its government shutdown contingency plan for fiscal 2023, said the Inflation Reduction Act “provided supplemental appropriations available through Sept. 30, 2031, for all IRS appropriations accounts. A full shutdown would be more extensive than the partial shutdown that started in December 2018, when Congress had enacted five of the 12 appropriations bills. A full shutdown would likely be similar to recent ones in 2013 and early 2018 when approximately 850,000 out of 2.1 million non-postal federal employees were furloughed.

How and why do mandatory programs continue during a shutdown?

Lawmakers are expected to push for greater transparency and demand detailed plans from the administration to mitigate the impact on taxpayer services. Essential functions, such as processing electronic returns and maintaining computer systems would continue but at a much slower pace. The Internal Revenue Service (IRS) is responsible for overseeing the collection of taxes in the United States.

This represents a substantial increase compared to the number of paper returns received. There are essentially two ways to avoid a government shutdown – by passing appropriations or a continuing resolution (see question on “What is a Continuing Resolution?”). Theoretically, the House and Senate Appropriations committees are supposed to pass 12 different appropriations bills that are broken up into subcommittees by subject area and based on funding levels allocated in a budget resolution. The IRS has around 360 taxpayer assistance centers and had been expanding the number over the last couple of years to improve customer service with the additional funds given to the IRS under the Inflation Reduction Act.

Whether you are an individual taxpayer or a tax professional, understanding these shutdown periods is crucial for planning and preparing your tax filings. Taxpayer assistance centers are designed to assist lower-income taxpayers in filing their tax returns, so the impact of closing those centers would be to reduce those services to lower-income taxpayers. I am not sure if all of those leases are long-term leases or if some would be short-term leases just to cover each the tax filing season.” Many federal government agencies and programs rely on annual funding appropriations passed by Congress.

The current fiscal year, FY 2025, has been funded by two separate CRs – one from October 1, 2024 through December 20, 2024, and another from December 21, 2024 through March 14, 2025. All services except “SendSubmissions” will be unavailable in the MeF production and assurance testing systems. A component of our space consolidation plan will be the termination of many soft term leases.

To the extent these terminations affect public facing facilities and/or existing tenants, we are working with our agency partners to secure suitable alternative space. In many cases this will allow us to increase space utilization and obtain improved terms.” California currently has the most IRS offices slated for closure, with seven locations affected. Cities such as San Mateo, San Marcos, Thousand Oaks, Stockton, El Centro, Visalia and Modesto are all included in the planned cutbacks.

Every year, Congress must pass, and the President must sign, budget legislation for the next fiscal year, consisting of 12 appropriations bills, one for each Appropriations subcommittee. Congress has not yet enacted any of the 12 bills for FY 2025 that make up the discretionary spending budget. In a “shutdown,” federal agencies must discontinue all non-essential discretionary functions until new funding legislation is passed and signed into law. With a shutdown falling during tax filing season, it could have an impact on return processing and timing of refunds. When taxpayers e-file their returns, the information is securely transmitted to the IRS electronically. This eliminates the need for manual paper processing and reduces the likelihood of errors or data entry mistakes.