TaxConnections Picture - IRS Building in WashingtonThe IRS started reopening operations on Oct. 17. Employees are reporting back to work, and the IRS IS assessing the impact of the 16-day shutdown on their national operations.

At this point, the IRS has received a large amount of correspondence during the closure. They know there will be a substantial increase in demand for their IRS phone services and many other operations.

On Oct. 17, the IRS started reopening their phoneIRS Building in Washington lines and there Taxpayer Assistance Centers, both of which will take time to ramp up to normal operating status.

In addition, other business operations have started resuming, including the processing of billions of dollars of refunds for individuals and businesses and honoring transcript and authorization requests from third parties.

Given the high demand for services, the IRS encourages taxpayers to wait to call or visit if their issue is not urgent, and to continue to use automated applications on the IRS website, www.IRS.gov, whenever possible.

Taxpayers who need immediate assistance are encouraged to visit Taxpayer Assistance Centers in their area or try call centers but should be aware there will be delays. Read More

TaxConnections Blogger Virginia La Torre Jeker reminds to file extensionThe IRS has finally announced that it will stop the automatic issuing of federal tax liens, levies and executions during the government shut down. Unfortunately, many automatic levies have been issued by the IRS and there is no one in the IRS to talk to or negotiate with to set up installment agreements or take other actions to remove the levy. This results in great hardship for taxpayers.

The IRS has been issuing notices, some dated October 7, 2013, even though the office was to be shut down by October 1, 2013. It is hard for me to believe that this was not designed to have maximum impact upon taxpayers. In fact all the IRS services that normally assist taxpayers, whether its at a service center, or on the telephone, as well as the normal collection and auditing function, have been terminated during the shutdown. This intentional design clearly is to put a maximum negative impact upon taxpayers.

Because of the complaints, the IRS is now issued a revised listing of its operations during the government shut down where it indicates that it is stopping to send future tax liens and levies until that section of the IRS reopens. Unfortunately Read More

government-closedIRS developed a plan for the government shutdown. And as you can imagine it is not good for tax payers. The Treasury Department released its 63-page long “FY2014 Shutdown Contingency Plan (Non-Filing Season)” for IRS on September 27.

Impact on filing- Yes you are required to file on time and pay taxes as usual. Tax payers with extensions are required to file by Oct 15 to be considered timely filed return. Electric filing is supported. Paper returns will not be processed until the shutdown ends.

No in-person or live phone assistance. No live telephone customer service assistance will be available during the shutdown. However, most automated toll-free telephone applications will remain operational. IRS walk-in taxpayer assistance centers will also be closed. IRS’s website will remain available, although some of its interactive features may not be available.

Certain appointments presumed cancelled. While the government is closed, people with appointments related to examinations (audits), collection, Appeals or Taxpayer Advocate cases should assume their meetings are cancelled. IRS personnel will reschedule those meetings at a later date. Read More

TaxConnections Blogger Betty Williams posts about continued services at the IRSDespite most lights being out at the IRS, taxpayers can still receive some services at the IRS. Crucial to many tax professionals are the IRS Transcripts of Account. Since it is an automated process, taxpayers can still use automated tools, such as IRS.gov, to request that a transcript of their personal tax records be sent to their address of record; the taxpayer will typically receive transcripts in the mail within five to 10 calendar days. Transcript requests by third parties cannot be processed at this time.

While audits, meetings with Appeals Officers and Taxpayer Advocate services are closed, taxpayers are still required to file tax returns and make tax deposits, preferably electronically, during the shutdown. IRS collection notices will continue to be automatically generated and levies remain in force. Refunds will not be issued.

For a summary of how taxpayers may seek assistance, Click HERE.

In accordance with Circular 230 Disclosure