Tax Debt During the Shutdown: What You Must Know
The government is officially shut down. Phone lines are busy. People are confused. Here is the reality you need to know. Your tax debt has not gone anywhere.
What is open right now
The IRS is open for the first five work days after October 1. More than 74000 IRS employees are reporting to work under the contingency plan and normal operations continue during this initial period. After the first five work days the status of operations can change based on funding and agency guidance. Several reports note the IRS will operate for five days with uncertainty after that.
Your tax debt does not take a break
Even with the shutdown in place penalties and interest are still building every single day. A government shutdown may slow some processes but it does not pause your balance. If you owe the number is still climbing.
It is a dangerous myth to think a shutdown means you get a break. Ignoring your tax debt now only sets you up for more stress later.
What happens when the IRS returns
When the government reopens the IRS will face backlogs and pressure to collect revenue quickly. That often means harder enforcement. Liens levies and collection actions can ramp up against anyone who has not taken steps toward resolution.
If you are not current on your returns or your payments you are exactly the kind of taxpayer they will focus on.
Why this is your time to take action
Yes the IRS is operating for now. That does not mean you should wait. This is the perfect time to take action.
File any missing tax returns
Get current with your ongoing tax obligations
Work with a tax debt resolution professional to build your strategy now
I help my clients use this pause to their advantage. Even while IRS employees are not fully staffed, we are still working. We get missing returns completed, bring accounts into compliance, and build the resolution plan step by step. That way when the IRS is back at full capacity, nothing is stalled on our side. My clients are already prepared, already complian and already positioned with a plan the IRS can formalize right away.
The bottom line
The shutdown might slow parts of the IRS but it does not slow your tax debt. Every day you wait penalties and interest continue to add up. When the IRS comes back they will come back harder.
The smartest move you can make right now is to get ahead. Get compliant get organized and get a plan in place.
I have been resolving tax debt for over 25 years and I promise you this…When it comes to tax debt there is always a solution!
Take the first step toward relief. Let’s find your solution together.