How does the government shutdown impact your tax season?
The federal government shutdown is one of the top news stories lately, with the impact it will have on the American people receiving top priority by the press. But when it really comes down to it, how will the government shutdown impact your business? Specifically, what will happen with the IRS and the upcoming tax season? Here's a quick look at the number of different ways the shutdown will or will not impact your business with regards to your tax issues.
You still need to fill out your paperwork. Any documentation that will be needed by your employees or estimated tax payments that need to happen need to go forward, preferably by their usual deadlines. Many documents need to be processed quickly at this point to meet the appropriate deadlines, so don't hold back from hiring in extra help if needed to get everything processed in a timely manner.
You will still need to file your taxes on time. The IRS will begin accepting returns on time starting on January 28. There is no expectation at this time that there will be any extensions on tax filings, so it is vital that you work on your business taxes with the expectation that they will be due on April 15, same as always. The IRS is bringing people back from furlough to ensure things go smoothly.
Refunds are not currently being held up by the federal government shutdown. Unlike prior government shutdowns, the current administration has stated plainly that refunds will go out in a timely manner. In the past, refunds have been held up during a government shutdown instead of being issued. Though some government officials are questioning the validity of this statement, the funds are technically on deposit to pay taxes, therefore refunds are not part of the federal government's property once those taxes are paid.
Though the federal government shutdown is having strong impacts on our country, you can rest assured by knowing what you need to do to handle the situation. But what if you've put things off because of the uncertainty of the shutdown? AccountRely's staff of experienced accounting and tax professionals can help get you caught up in no time. Please feel free to contact us today to get started.