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Updated: 3 hours ago How To

How to stay on top of your taxes amid a government shutdown

By Tabitha Swanson, guest columnist

When the federal government shuts down, it sends ripple effects through the entire economy — and the tax world is no exception. 

Tabitha Swanson portrait
Photo / Jen Dean Photography
Tabitha Swanson

The biggest disruption during tax season is from the Internal Revenue Service, where services are slowed or temporarily stopped.

While some essential IRS functions continue during a shutdown, they are extremely delayed. That makes proactive planning more important than ever.

Here’s how to navigate tax challenges during the ongoing shutdown.

Set your expectations

One of the most important things to realize is that delays are inevitable, but deadlines must be followed.

Refund and processing delays: Manual reviews and paper processing may take significantly longer. This will be sensitive for those who’ve filed paper returns and expect a refund. Those refunds are expected to take significantly longer, so be mindful in case you are banking on a tax return to pay a debt, fund a future vacation or make a major purchase. 

Mail documents on time: File petitions, responses and other time-sensitive documents by their due dates, even if the IRS or tax court is closed.

Use tracking: Send important mail with certified tracking to prove it was submitted on time.

Deadlines still apply: Even though the IRS will be backed up and slow to respond, it still mandates that all tax filing and payment deadlines are met. To avoid penalties, you must adhere to all current filing deadlines.  

Technology is your ally 

While IRS offices may close or reduce staff, electronic systems typically stay operational.

File electronically: E-filing allows returns to be processed more quickly and helps to avoid the long delays associated with paper submissions.

Use IRS Direct Pay: Make payments through secure IRS payment systems, which remain active even when offices are not fully staffed.

Stay Informed

During a time of transition, there are a variety of temporary changes and guidance issued during the shutdown, so remain aware to new information coming in. 

Professional organizations like the American Institute of Certified Public Accountants are advocating for relief on behalf of taxpayers’ and there could be some waivers and extensions granted. 

Don't ignore notices: These may continue during the shutdown, but taxpayer responses could go unanswered for weeks or months.

Respond promptly: Tax professionals will still prepare and submit responses within deadlines to preserve taxpayer rights, even if resolution is delayed.

Access to data 

Tax records may be harder to obtain during a shutdown, especially if you’re trying to process changes.

Rely on existing information: Use any existing authorizations to access IRS transcripts or records through online tools.

Plan for downtime: These systems can also be disrupted, so consider downloading and organizing important documents before shutdowns occur.

Communication and compliance 

A government shutdown doesn’t stop the tax calendar — and it certainly doesn’t stop you from needing answers.

Remain in communication with your tax professional, as we are advocating on your behalf to ensure you remain compliant and avoid penalties — even during the standstill.

About the author

Tabitha Swanson is the founder and owner of the Swanson Group, a full-service accounting firm in Westbrook. She can be reached at tabitha@yourmainecpa.com. 

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