File Your Taxes On Time Despite Government Shutdown
As the federal government remains shut down, taxpayers are reminded to file their taxes before the October 15 deadline. Even though the Internal Revenue Service (IRS) is furloughing employees, essential workers will continue to process e-filed tax returns as usual.
Deadline Extensions and Advice
If you filed a six-month extension on April 15, the October 15 deadline applies to you. Additional deadline extensions are available for individuals in federal or state declared disaster areas. Tom O’Saben, Director of Tax Content & Government Relations at the National Association of Tax Professionals (NATP), emphasizes the importance of filing on time.
In his more than thirty years of experience, O’Saben noted rare instances of deadline extensions for tax filing or payments. He mentioned that the only significant change he has seen was during the COVID-19 pandemic.
Impact of Government Shutdown
The ongoing federal government shutdown will affect the filing process. The IRS initially had a contingency plan to operate for five days, but that period has elapsed, leading to layoffs of employees. O’Saben anticipates a decrease in the level of service available to taxpayers during the shutdown.
IRS services that involve employees assisting with tax return filing or addressing queries are currently unavailable. O’Saben advises individuals to opt for electronic filing to minimize disruptions.
Penalties and Recommendations
Lisa Greene-Lewis from TurboTax highlighted the consequences of not filing on time, especially if taxes are owed. Failure to file penalties amount to 5% of the owed amount each month. However, if a refund is due, there is no penalty, but it is still advisable to file promptly.
Individuals facing challenges in meeting deadlines can appeal penalties if circumstances beyond their control prevented timely filing. Greene-Lewis suggests organizing all necessary documents to maximize deductions and credits when filing.
