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Government Shutdown – How Will This Affect The IRS And My Tax Situation?

What is a Government shutdown?

When Congress and the US President cannot agree on a budget all ‘non-essential’ parts of the US Government will stop operating until a budget or other legislation is.

This link shows the official plans for dealing with a shutdown.

How long do shutdowns last?

The longest shutdown started in 2018 and lasted 36 days. There is no time limit for a shutdown, but most tend to end within a few weeks of starting.

Will I have to pay taxes during a government shutdown?

YES, your tax obligations do not change with a government shutdown. You will still owe the same amount of taxes when the government starts operating again.

Can the IRS come after me during a shutdown?

NO, all collections will stop during a shutdown, but you will not be able to stop any collections that already started either.
IF, the IRS issues a garnishment or levy before the shutdown starts there is no way to release it until the shutdown ends.

Will States be shutdown during a government shutdown?

NO, States will continue to operate as normal and will pursue collection activity as if there wasn’t a government shutdown.

What should I do during a shutdown if I owe taxes?

Prepare for when the government re-opens which could be very quickly. The IRS will be collecting again soon so it is the best time to prepare to resolve your case without the IRS coming after you!

Understanding the US Government Shutdown: Causes, Consequences, and Expectations

In This Video We talk about how government shutdowns impact the IRS, exploring impacts on tax returns, auditing processes, and day-to-day operations.

🖋️ Disclaimer 🖋️
This video is intended for educational and informational purposes and does not constitute financial or political advice. Views expressed are independent and not under the influence of any organization or individual.

When you have questions? Call a Tax Professional and get some advice! We give free advice all the time and would much rather you call when you have questions than step in a bear trap and have a huge problem.