IRS collecting money but not sending tax refunds during shutdown
Published October 02, 2013
The government shutdown has kept home an estimated 85,000 employees of the Internal Revenue Service. That is too few to process refunds but does not let taxpayers out of their obligations, according to a report in The Washington Times.
The newspaper’s Jacqueline Klimas reported on October 2 that an important deadline is looming: Taxpayers who requested a six-month extension on their 2012 returns are still required to file by Oct. 15.
Edward Karl, vice president of taxation for the AICPA, estimated that 6 million to 7 million people have filed for extensions and are facing that deadline this year. Although the percentage is small — about 120 million 1040 forms are filed each year — a lot of people may have questions with nowhere to turn. “There will have to be some kind of a process, and they might handle that on a case-by-case basis. They tend to be reasonable on these types of things where they may not give blanket relief but they will notify their staff of possible one-off situations where people need to be a little bit more lenient,” Karl told the newspaper.
While the IRS will not be open to answer account-related questions, Karl said CPAs are a good resource for people with questions.