top of page

What the government shutdown means for your money!

The federal government goes into its second week of a partial government shutdown. President Trump and leaders have come to a halt concerning the funding for a border wall among Mexico borders. The shutdown began shortly before Christmas and White House chief of staff indicated it can “go on for a while.”

What agencies are impacted?

According to the Wall Street Journal, nine federal agencies are impacted. These include federal agencies such as those that provide museum services, passports and zoos are closed during this time.

In addition, some agencies such as Small Business Administration and Federal Housing Administration, who provide much-needed funding to taxpayers will not be in service during this time. More importantly, the partial government shutdown will have a huge impact on the Internal Revenue Service (IRS), which is headed to tax season.

Services that will continue

Keep in mind, while the closure means that many federal agencies will be impacted, essential personnel will continue to work throughout this time.  This includes law, traffic control, military, social security and services that protect life and death.  As such, those expected to receive social security benefits can still rely on their payments. However, other government programs may be impacted.

How will the government shutdown impact the IRS

The IRS expects to operate only a fraction of its staff during the shutdown.  Only essential services will be provided at this time. This means that the IRS will continue to process electronic tax returns and payments, website activities, active criminal investigations, and a few more critical activities.

However, the IRS will cease from processing refunds.  In addition, audits and processing of form 1040x will not be available at this time.

Filing season and tax refunds

Keep in mind, the official date of filing season starts January 29th.  As such, if Congress can agree on a bill before the start of the filing season, all should go as plan. If not, taxpayers should and can expect delays.

#Kemcents Tip

As we approach tax season, this is a good time to get your documents together. Consider using a tax organizer to determine what records you need to obtain. Check out my website, and click on Tax Organizer!

#federalagencies #governmentshutdown #IRS #taxes

0 views0 comments
bottom of page