Federal Government Shutdown Creates Tax Filing Uncertainty

The IRS has announced it will begin accepting paper and electronic tax returns for the 2018 tax year on January 8 for business tax returns and January 28 for individual tax returns, but much remains to be seen about how the ongoing shutdown of the federal government will affect this year’s filings. In the past, the IRS has not paid tax refunds during shutdowns because it did not have the appropriated funds needed to pay the employees who process refunds. The implementation of the federal tax overhaul could further complicate matters for taxpayers. The 2018 tax year is the first to be subject to the Tax Cuts and Jobs Act (TCJA), which brought sweeping changes to the tax code, as well as new tax forms. Various TCJA implementation activities, such as the development of new publications and instructions, will continue because they’re funded by earlier appropriations legislation. Regardless of how IRS operations proceed, taxpayers still need to comply with the filing deadlines. Individual taxpayers must file by April 15, 2019. Individuals who obtain a filing extension have until October 15, 2019 to file their returns but should pay the taxes owed by the April deadline to avoid penalties. If you have questions about tax filing, please contact us.