The IRS and Potential Impact on Taxpayer Services During Government Shutdowns

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Title: IRS Shutdown Contingency Plan Raises Concerns for Taxpayers

Date: [Insert Date]

The Internal Revenue Service (IRS) is yet to release its contingency plan for a potential government shutdown. However, historical data suggests that the agency is known for curtailing its operations aggressively during funding lapses. This has raised concerns among taxpayers, as they may face increased financial hardship if government services are limited.

The IRS chief counsel, responsible for interpreting tax laws, has consistently held the view that government workers can only continue working during shutdowns if their duties directly protect the government rather than individuals. As a result, ordinary taxpayers could be more exposed to financial difficulties.

One notable example occurred during the 35-day government shutdown in late 2018 and early 2019. During this period, employees from the Taxpayer Advocate Service, the agency’s in-house watchdog protecting consumer rights, were limited in their ability to assist taxpayers. They could only open mail to search for checks payable to the government, which prevented them from conducting case work and resolving taxpayer disputes – the core objectives of the service.

At the beginning of the 2018-2019 shutdown, approximately 12 percent of IRS employees currently on the job were unable to answer taxpayer phone calls, issue tax refunds, release liens and levies, or provide various other essential taxpayer services. The filing season, which typically starts in early January, was approaching, leading the tax agency to exempt more employees from the shutdown and return thousands of staff members to answer phone calls and disburse refunds.

It is crucial for the IRS to address the potential consequences of a government shutdown promptly. Taxpayers rely heavily on the agency’s services, especially during the critical filing season. The IRS must ensure that adequate provisions are in place to prevent unnecessary delays and difficulties for individuals seeking assistance with their taxes.

In light of the impending budget discussions, taxpayers eagerly await the release of the IRS’s contingency plan. It is hoped that the agency will prioritize the needs of the public and take proactive measures to minimize disruption if a shutdown were to occur.

As the situation develops, the public is urged to stay updated on any updates from the IRS regarding its contingency plan. Ensuring effective communication and support for taxpayers, particularly during times of financial uncertainty, is vital for maintaining public trust in the tax system and reducing the potential impact of a government shutdown on individuals and businesses alike.

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