What happens when we have a government shutdown?

Key takeaways

• In the event of a government shutdown, Jackson Hewitt Tax Pros will be here to answer your questions and help you with your tax return when it’s time to file.
• During a government shutdown, Federal agencies cannot continue providing any service or function considered to be nonessential or discretionary, but must continue providing essential services.
• Historically, the IRS has not closed during a government shutdown. However, there has never before been a shutdown during the tax-filing season.
• We do not expect tax filing deadlines to change even if there is a government shutdown.
• It’s a good idea to file early with a Tax Pro who can help answer your questions and avoid further delays, should there be a shutdown during tax filing season.
• The sooner you file your tax return, the sooner you will get your tax refund, and the less likely you are to be impacted by a potential government shutdown.

What happens during a government shutdown? 

In a government shutdown, Federal agencies can no longer continue providing any service or function considered to be non-essential or discretionary. However, Federal agencies do continue providing essential functions and services, such as law enforcement, mail delivery, or power grid maintenance, as normal.

The Federal government also continues to fund mandatory spending programs, like Medicare, Medicaid, and Social Security, during a shutdown.

What closes when the government shuts down? 

As we mentioned, Federal agencies no longer have funding for any functions or services that are discretionary or non-essential during a government shutdown. So, for example, the U.S. Postal Service functions as normal, but monuments and national parks will be closed to the public.

Does the IRS close during a shutdown? 

No, the IRS has not historically closed during a government shutdown, and even if it did, you’d still need to file your taxes. There has never been a government shutdown during the tax -filing season before. While the potential impact is unclear, our Tax Pros are always up to date on the latest tax laws and will make sure you get your questions answered and every dollar you’re owed.

Will a government shutdown affect my tax return? 

Whether and how much a government shutdown would impact tax returns are unknown at this point. However, employee furloughs could slow down some IRS operations, including:

• Processing paper tax returns and other mail correspondence.
• Customer service assistance.
• Processing tax refunds, especially for paper tax returns.
• Responding to tax disputes and audits.

With the potential for fewer IRS employees to answer questions and help with your taxes, it’s more important than ever to have a Tax Pro on your side who can help. No need to stress about how a government shutdown could affect your taxes, because we’re here for you mornings, days, evenings, and even weekends.

Will my tax refund be delayed because of a government shutdown? 

Whether or not your tax refund is delayed, or how long it’s delayed, depends on the number of IRS employees furloughed during a potential government shutdown. Regardless of what happens, to get your tax refund sooner than later, it’s a good idea to file your tax return as soon as you can, and get it funded on a prepaid card or via direct deposit if possible.

If you’re concerned about your tax refund, stop by a Jackson Hewitt location or give us a call. We’re here to help in case of a shutdown.

Do filing deadlines and extensions change during the government shutdown? 

No, we do not expect filing deadlines and tax-filing extensions to change during a government shutdown. Nor do we expect the underlying tax law to change. This means that you’ll still have to file your tax return by the deadline, even if the government shuts down.

When is the tax-filing deadline? 

The deadline to file your tax return is April 15, unless that date falls on a weekend or holiday. This is also the day you must file an extension if you cannot meet the tax deadline. Any tax you owe is also due on the tax deadline, even if you file an extension. If you cannot pay what you owe by this day, you can always sign up for a payment plan. If you filed an extension, the deadline to finish filing your taxes is October 15.

What should taxpayers do if the government shuts down? 

You should file your taxes as normal, even if the government shuts down. Keep in mind that, shutdown or no, e-filing and opting to receive your tax refund via direct deposit or on prepaid card will often mean faster processing than filing by mail, and filing sooner means getting your tax refund sooner. Filing early will also help you avoid any possible delays due to a shutdown.

File taxes early to avoid delays 

When there's a shutdown, it’s important to file early. The sooner you file, the less likely you are to see a delay in processing your return, or your refund!

And even during a shutdown, our Tax Pros are always here to help. We can answer your questions, help you avoid tax stress, and get you every credit, deduction, and dollar you deserve.

We’ve already helped our clients get billions in tax refunds this year, and every year. Don’t wait. Book your appointment today.

About the Author

Mark Steber is Senior Vice President and Chief Tax Officer for Jackson Hewitt. With over 30 years of experience, he oversees tax service delivery, quality assurance and tax law adherence. Mark is Jackson Hewitt’s national spokesperson and liaison to the Internal Revenue Service and other government authorities. He is a Certified Public Accountant (CPA), holds registrations in Alabama and Georgia, and is an expert on consumer income taxes including electronic tax and tax data protection.

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