With Internal Revenue Service telephone help lines shut and delays making it difficult to obtain needed information for returns, some of Mr. Bell's clients have grown frustrated and angry.
"It's an absolute mess," says Mr. Bell of Gene Bell & Associates, an independent adviser in Bellingham, Wash., which is affiliated with H.D. Vest Investment Services.
To obtain information on new clients seeking help with their returns, Mr. Bell must file a Form 2848, a power of attorney authorizing him to represent them before the IRS. The enrolled agent with the IRS always has been able to do that online or by calling the service's Practitioner Priority Service, a support line.
But since the shutdown began, the help line has been shut off.
Previously, if Mr. Bell faxed the form in, it might take 72 hours to obtain the required authorization, he says. Since April 15, however, that's slowed to more than two weeks. With the shutdown, he says, he has "no clue if anybody is even looking at them."
He can still file requests online, but isn't sure how much longer that will be possible. The "Disclosure Authorization and Electronic Account Resolution" system was due to be shut down "largely to low usage," but that's been delayed, according to a statement on the IRS' website.
Some of Mr. Bell's clients have received notices indicating there's a problem with their returns, which require a response within 30 days. He'll often try to request more time.
Now, he might get a letter, which basically states: "'Thanks for your communication. We'll get back to you in 60 days'," he says. "The next thing they get is a levy."
Michael David Schulman, an adviser with Blue Flamingo Wealth Management, who also runs Schulman CPA, has had issues with several clients' returns as a result of the shutdown. Before it began, for example, the IRS told him via letter and a telephone call that a client's account would not go into collection. Then, just before the shutdown, the client received a notice of a potential levy, he says.
"That's a nightmare because there's no one to call for help," says Mr. Schulman, who's based in Central Valley, N.Y.
Advisers and accountants continue to send information to the IRS, "but they're just sitting on piles," he says. "The longer they sit there, the more there's a chance they'll get lost."
A major concern is what happens when the IRS reopens, Mr. Schulman says. "How much mail do you think is sitting on those desks? There's no way they're going to get back to you in 60 days. Contacting them isn't going to be easy either."
Kyle Brownlee, chief executive and senior wealth adviser at Wymer Brownlee Tax and Financial Management, is also frustrated. The most common problem he's facing is the inability to get transcripts from the IRS. For clients who have lost forms, the firm, based in Enid, Okla., usually turns to the local IRS office to obtain information on payments they've made to the IRS, he says. But most of those offices are now closed or offering limited service.
"We're waiting," he says. "The problem is under professional-conduct rules, we're not supposed to file knowingly incomplete or inaccurate tax returns, yet they're asking us to meet the deadline."
Luckily, just before the shutdown, the firm's tax director spent hours requesting transcripts for any clients it anticipated might need them, Mr. Brownlee says.
Melissa Labant, director of tax advocacy at the American Institute of CPAs, said the organization's phone lines have been buzzing with calls from frustrated CPAs, some concerned that they won't be able to meet the Oct. 15 deadline.
Tax season is still going smoothly for most of the group's 394,000 members, but for those affected, "panic is starting to set in," Ms. Labant says. As the 15th nears, the concern grows that some returns and issues may not be addressed in a timely manner, she says.
IRS e-services programs are working, but with no one answering telephones, accountants who aren't registered to use the e-services program have no way of getting help if they face a unique situation. "Tax practitioners are desperate for answers, and doing the best they can, Ms. Labant.
It's difficult especially for taxpayers who have unpaid tax bills or notices to levy, she says, noting that "interest and penalties are accruing during this shutdown."
Others are awaiting refunds, which the IRS is not issuing during the shutdown.
For now, accountants continue to file tax returns online through the IRS's Modernized e-File system. "I have my fingers crossed that the MeF system continues to operate smoothly," says Ms. Labant. "If the MeF system goes down, that could be a disaster for practitioners."
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