(January 28, 2019)
At the beginning of 2019, the partial U.S. government shutdown created uncertainty, especially regarding tax filing and refunds. Many taxpayers questioned whether the Internal Revenue Service (IRS) would continue operating and if refunds would be delayed.
Fortunately, even during the shutdown, the IRS continued operating, although with reduced staff, and confirmed that major tax issues would not be affected. The government later reopened temporarily for three weeks, though the possibility of another shutdown remained if no agreement was reached between Congress and the President.
Below are the main consequences of the shutdown and what could happen again if the situation repeats.
1️⃣ Impact on the Internal Revenue Service (IRS)
The government promised that most taxpayers with refunds would receive them on time, despite the shutdown. However, several IRS services were temporarily suspended, according to reports from Forbes:
Services suspended during the shutdown:
- Non-disaster-related transcript processing.
- Form 1040X (amended returns).
- Audits (with limited exceptions).
- Legal guidance.
- Public call centers.
Services that continued at a reduced pace:
- Refund processing.
- Disaster assistance.
- Electronic filing of tax returns.
- Tax form design and printing.
- Appeals (legal deadlines were not extended).
- Certain civil and criminal tax cases (liens, bankruptcies, seizures, statute expirations).
- Active criminal investigations.
- The official IRS website, IRS.gov.
2️⃣ Federal Employees Without Pay
Approximately 800,000 federal employees were affected, temporarily working without pay or being furloughed.
While many expected retroactive payment once the government reopened, this was not guaranteed, especially for contract workers.
3️⃣ Airport Transportation Security
Airports experienced long security lines and delays due to staff shortages, impacting safety operations and travelers nationwide.
4️⃣ National Parks and Museums Closed
Tourism was also heavily impacted.
Nearly one-third of national parks, managed by the National Park Service (NPS), were closed, along with museums and other federal attractions, reducing tourism in several cities.
Conclusion: No Need to Worry About Taxes
Despite the uncertainty caused by the government shutdown, tax processing continued and refunds were not stopped.
At Calidad Insurance, we encourage taxpayers to file on time and seek professional guidance to stay informed and compliant during periods of government uncertainty.
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