USA TODAY: The U.S.government may be partially shut down with no apparent end in sight, but the taxman never rests.
According to Internal Revenue Service guidelines, taxpayers who requested an extension by the April 15 tax filing due date will have until Wednesday, Oct. 15 to file without penalties – regardless of a shutdown entering its second week.
Although the IRS confirmed over 34,000 employees — nearly half of its staff — were furloughed Oct. 8, the agency’s shutdown contingency plan keeps some customer service agents at work.
“During a government shutdown, there could be impacts to IRS services,” Elizabeth Young, director for tax practice and ethics with the American Institute of CPAs, told CNBC. “However, electronic filing systems typically remain operational, so you can still file online.”
IRS UNION WARNS OF DELAYS
The National Treasury Employees Union warned in a statement that taxpayers could face “increased wait times, backlogs and delays.”
“Every day these employees are locked out of work is another day of frustration for taxpayers and a growing backlog of work that sits and waits for the shutdown to end,” the union said.
Jennifer MacMillan, president of the National Association of Enrolled Agents, warned CNBC that those who need specialized customer service will face longer delays.
HOW MANY PEOPLE REQUEST EXTENSIONS?
The IRS projected that around 19.8 million would request extensions this year, according to an agency report. The agency received over 20 million extension requests in fiscal year 2024.
The late payment penalty is 0.5% of a taxpayer’s unpaid balance per month, with a cap at 25% of the unpaid taxes. The failure-to-file penalty is 5% of unpaid taxes per month or partial month, up to 25%. For those with an extension, this begins Oct. 15.
