Benjamin Franklin once remarked, “In this world, nothing can be said to be certain, except death and taxes.” Taxes, as the financial backbone of government operations, are inescapable even during a government shutdown. Whether you’re expecting a refund or owe the Internal Revenue Service (IRS), preparing and filing taxes during a government shutdown can feel daunting. Conflicting information, uncertainty about refund timelines, and reduced IRS operations can add stress to an already challenging season. However, with the right approach and resources, you can ensure your taxes are filed correctly and on time.
In this guide, we’ll explore what a government shutdown means for tax preparation, its implications for taxpayers, and actionable steps you can take to minimize delays and stress.
What Happens to Tax Preparation During a Government Shutdown?
A government shutdown occurs when Congress fails to approve funding for federal agencies, leading to reduced operations. For the IRS, this often means operating with limited resources and personnel. Historically, refunds have not been issued during a shutdown due to these limitations. However, during the current shutdown, the acting director of the White House Office of Management and Budget has assured taxpayers that refunds will still be processed—though delays are inevitable.
Impact on IRS Operations
During a shutdown, the IRS typically operates with less than 13% of its workforce. This reduced capacity significantly affects their ability to process returns and issue refunds promptly. While the IRS will still accept tax filings, the limited staff may result in the following:
- Delayed Refunds: Refunds may take longer to process due to a backlog of returns.
- Limited Services: Essential services, such as audits and customer support, are likely to be paused or significantly delayed.
- Extended Delays Post-Shutdown: Even after the government resumes full operations, the IRS will face a backlog, further delaying refunds and other services.
Tax Deadlines Remain Unchanged
Despite reduced IRS functionality, the deadline for filing taxes remains the same. For the 2025 tax season, taxes are due by April 15. This emphasizes the importance of timely filing to avoid penalties or additional delays.
Steps to Ensure Smooth Tax Preparation During a Shutdown
If you’re expecting a refund or need to file your taxes, taking proactive steps can help mitigate the challenges of filing during a government shutdown.
1. File Taxes as Early as Possible
Filing your taxes early can secure your place in the processing queue, reducing wait times for refunds. The sooner your return is submitted, the quicker it can be processed, even with limited IRS staff. Waiting until the deadline increases the likelihood of encountering delays.
2. Opt for Electronic Filing
Filing electronically is the fastest and most reliable method for submitting your tax return. Unlike paper filings, electronic returns can be processed automatically by IRS systems without requiring human intervention. This expedites the refund process and reduces the risk of errors.
Benefits of Electronic Filing:
- Faster processing times.
- Reduced risk of errors.
- Automatic confirmation of receipt.
3. Ensure Accuracy in Your Tax Return
Errors in your tax return can lead to additional delays, especially during a shutdown when IRS support services are limited. Double-check all information, including:
- Social Security numbers.
- Income details.
- Deductions and credits claimed.
Using tax preparation software or consulting a professional can help ensure accuracy and compliance with tax laws.
4. Be Aware of Services on Hold
Certain IRS services may be unavailable during a shutdown. For example:
- Audits: If your return requires auditing, processing may be delayed until the shutdown ends.
- Amended Returns: Processing for forms like the 1040X may also be paused.
- Customer Support: Limited staff may result in longer wait times for assistance.
Understanding these limitations can help you set realistic expectations and plan accordingly.
5. Seek Professional Tax Preparation Assistance
A qualified tax preparer can help navigate the complexities of filing during a government shutdown. Professionals can:
- Ensure your return is accurate and complete.
- Provide advice on deductions and credits.
- File your taxes electronically to minimize delays.
Nexus United, for example, offers comprehensive tax preparation services. Their experts can assist with both electronic and paper filings, taking the stress out of tax season.
What to Expect If You’re Expecting a Refund
For many taxpayers, receiving a refund is a crucial part of financial planning. While the assurance that refunds will be issued during the shutdown is encouraging, it’s important to prepare for potential delays. Refunds may take longer than usual to process due to the reduced IRS workforce and backlog.
How to Track Your Refund
Use the IRS’s “Where’s My Refund” tool to monitor the status of your refund. This tool provides updates on:
- Receipt of your tax return.
- Approval of your refund.
- Issuance of your refund.
Why Filing Correctly Is More Important Than Ever
During a government shutdown, the IRS’s ability to address errors or omissions in tax returns is limited. An incorrect return can lead to significant delays, further compounding the challenges of tax season. Taking the time to ensure accuracy and completeness is essential to avoid unnecessary complications.
Key Tips for Filing Correctly:
- Gather all necessary documents, including W-2s, 1099s, and receipts for deductions.
- Verify your bank account information for direct deposit refunds.
- Review tax law changes for the 2025 filing season.
Final Comments
Filing taxes during a government shutdown may present unique challenges, but it doesn’t have to be overwhelming. By filing early, choosing electronic submissions, ensuring accuracy, and seeking professional assistance, you can minimize delays and stress. Whether you’re expecting a refund or need to pay your dues, taking these proactive steps will help you navigate tax season with confidence.
Remember, the deadline for filing remains April 15, 2025. Don’t wait until the last minute—start preparing your taxes today to stay ahead of the curve.
