Jackson Hewitt Tax Service

 

Possible Shutdown of Federal Government

 

As this goes to print, Congress is still trying to come to a compromise on a budget for the 2011 fiscal year. Currently, various departments of the federal government have been working on short-term emergency spending bills which will run out Friday, April 8. Without an approved budget, the federal government is faced with a government shutdown. What does this mean to taxpayers and to the IRS at this time of the year?

 

The IRS will continue to operate on an electronic basis. e-Filed tax returns will continue to be received, processed and acknowledged and requests for direct deposit refunds will also be honored. Additionally, balance due payments, estimated tax payments and all other tax payments made either electronically or by mail will also be processed.

 

Tax returns filed as paper will be accepted but not processed and could be delayed under current proposed plans. In addition, mailed refund checks may not be processed.

 

The IRS may have some offices open in larger cities and the IRS call centers will most likely be operating with a skeleton crew only.

 

There is no extension to the filing deadline for federal income tax returns due to a federal shutdown.

 

Jackson Hewitt wants to make sure our current clients and the local community are aware that we can help them by electronically filing tax returns and providing direct deposit of refunds or electronic payment of monies owed. In addition, Jackson Hewitt offices can answer the tax questions you would normally call the IRS with.

  

In summary, if there is a government shutdown:

 

• There will be no:
  • Delay in filing or processing or e-filed tax returns or direct deposit refunds 
  • Extension of the filing season 
  • Delay in processing payments made to the IRS 
  • Processing paper filed tax returns and refund requests 
  • Refund checks mailed 
   
• IRS call centers may be cut back to a skeleton crew only 
• IRS offices in large cities may be open with a skeleton crew and other offices closed until the shutdown ends 

 

We will update you as developments occur.