It is big news right now that the US government is facing partial closure. The partisan politics in Washington are going to affect most Americans whether they expect it or not. My list of the tax implications to the shut down is:
- Approximately 90 percent of IRS employees are not at work today. If you want to call the IRS to work out a problem, you will likely be unable to reach anyone.
- Small business owners with tax problems businesses could be paralyzed because they cannot resolve IRS collection actions.
- Potential home buyers without tax problems will likely face an uphill battle getting financing. Lenders verify income with the IRS and will not be able to do so.
- Tax compliance duties are unchanged. The October 15th filing deadline is coming up soon and taxpayers must meet it.
- Civil IRS audits will be suspended. The problem will hang over the taxpayer’s head indefinitely.
- Criminal investigations will continue – no reprieve there.
- Starting a new business will be complicated. For instance, business owners may face difficulty obtaining employer identification numbers so they can open a bank account.
- Resolving collection problems – reversing IRS levies and liens will be difficult. The IRS computer system will continue to operate its collection arm – but getting the IRS to release levies or withdraw liens will be nearly impossible.