IRS offices in Washington, D.C., and nationwide are operating with dramatically-reduced staffing as of October 1, the first day of the lapse in appropriations (TAXDAY, 2013/10/01, C.1). The IRS implemented its shutdown Contingency Plan, such that that many functions have ceased working and others are operating with a significantly reduced focus (TAXDAY, 2013/10/01, I.1). The Service reminded taxpayers in an announcement on its website that the underlying tax law remains in effect, as do their tax obligations.
IRS Activities
At IRS headquarters in Washington, D.C., taxpayers trying to contact the Service are hearing voice messages explaining that it is operating with minimal staffing. One typical voice message says: "Due to the federal government shutdown, IRS operations are limited, and this office will be closed during the shutdown. Please be advised that by law we are unable to conduct normal daily operations during this time." Similar voice messages can be heard in IRS field offices, practitioners told CCH.
On its website, the IRS instructed taxpayers to meet their tax obligations as normal during the lapse in appropriations. The Service encouraged taxpayers to file returns electronically and noted that its Free File partners will continue to accept and file tax returns. Refunds, however, will not be issued during the lapse in appropriations, the Service explained.
Taxpayers with appointments related to examinations (audits), collection, Appeals or Taxpayer Advocate cases should assume their meetings are cancelled, the IRS explained. Service personnel will reschedule these meetings at a later date, presumably after funding is made available.
October 15 Deadline
The IRS instructed individuals who requested an extension of time to file that they should file their returns by October 15, 2013. In frequently asked questions (FAQs) posted on its website (http://www.aicpa.org/interestareas/tax/resources/irspracticeprocedure/pages/shutdown-2013_irs-impact.aspx#Top), the American Institute of Certified Public Accountants (AICPA) told taxpayers and practitioners to assume that the extended due date for individual returns (October 15, 2013) is unchanged. "The AICPA Tax Executive Committee is currently considering whether it is appropriate to advocate for a legislative solution to provide for an additional extension of time to file tax returns," the association reported.
PTINs
On social media, the IRS Return Preparer Office (RPO) reported that the online Practitioner Tax Identification Number (PTIN) system is not affected by the lapse in appropriations. Tax professionals can obtain or renew a PTIN and call the PTIN helpline, the RPO explained. RPO added that it continues to plan for PTIN renewal season, which is scheduled to begin in mid-October.
Treasury Department
The Treasury Department announced that many pages and documents on the department’s website (www.treasury.gov) will not be updated during the lapse in appropriations. Some web pages will be updated, including interest rate statistics, the Financial Stability Oversight Council, the Small Business Lending Fund, and the State Small Business Credit Initiative. After funding is authorized, the Treasury Department reported it will work to restore regular web service as soon as possible.
AICPA
In its FAQs, the AICPA explored a number of concerns for taxpayers and tax professionals during the government shutdown. The AICPA noted that IRS e-Services will continue to operate. "The IRS will continue to generate notices during a government shutdown; however, no employees will be available to make corrections to the notices, answer questions, or take other actions," the AICPA observed.
Resuming Work
The IRS is expected to resume work when funds are appropriated for the Service to continue its mission. The Treasury Department previously instructed IRS managers to inform employees that they should stay tuned to the media for information on returning to work. The IRS also has opened a telephone hotline for employees.
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