Paul L. Caron
Dean





Saturday, April 9, 2011

Impact of a Government Shutdown on the Treasury Department and IRS

Treasury Department Seal Treasury's Lapse in Appropriations Contingency Plan (April 8, 2011):

This is an overview of the Treasury Department lapse in appropriations contingency plan.  Additional details are provided in the individual bureaus plans also posted on the site, including: ...  the Internal Revenue Service. ...

In total, the Treasury Department has approximately 127,000 employees.  In the event of a lapse in appropriations, approximately 92,000 would be furloughed and 35,000 would remain on duty. Because the possible lapse comes at the height of the annual tax filing season, the majority of these employees would be excepted from furlough to handle essential tax filing and service functions of the IRS. ...

  • Individuals should keep filing their tax returns with the IRS and are required to do so by April 18.  The IRS would be accepting all tax returns.  Once they’ve been accepted, the IRS would generally process and issue refunds for electronically filed individual returns.  Individuals are urged to file electronically, because most of these returns are processed automatically and would not be delayed.  Because of limited IRS staffing, paper returns would be accepted, but would not be processed in the event of a lapse in appropriations and taxpayers who file paper returns would experience a delay in receiving their refunds. Limited telephone customer service functions would remain available, but IRS walk-in taxpayer assistance centers would be closed.
  • If 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 would reschedule those meetings at a later date.

IRS Logo IRS, FY 2011 Shutdown Contingency Plan (During Lapsed Appropriations):

This Plan is developed for implementation during a lapse in annual appropriations to comply with the requirements of the Antideficiency Act, 31 U.S.C. §§ 1341 and 1342. The Act prohibits agencies from obligating funds exceeding, or in advance of, appropriations and from employing personnel during a lapse in appropriations except to protect life or property.

Bloomberg, About 35,000 Treasury Employees to Keep Working, U.S. Says

Update: Details of the budget deal to avert a government shutdown:

President Obama's Statement on the Bipartisan Agreement on the Budget:

Joint Statement of House Speaker John Boehner and Senate Majority Leader Harry Reid:



Details of the Agreement:

DENIES ADDITIONAL FUNDING TO THE IRS.  The Obama administration has sought increased federal funding for the Internal Revenue Service (IRS) – money that could be used to hire additional agents to enforce the administration’s agenda on a variety of issues.  This increased funding is denied in the agreement.

https://taxprof.typepad.com/taxprof_blog/2011/04/impact-of-the-government.html

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