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Does A Partial Government Shutdown Impact My Tax Debt?

Wednesday, January 23, 2019

 

Since the beginning of 2019, the impact of the partial government shutdown on taxes and tax season has been the question of the day. While the total impact is still unfolding, as it relates to the amount of your tax debt, if you owed back taxes before the partial shutdown and you haven’t paid them, you still owe your back taxes. What’s more is that interest will continue to accrue, daily, to the balance of what you owe. So, in short, you still owe, and your tax debt will continue to grow regardless of the partial shutdown.

As a tax debt resolution company, Alliance Tax Solutions is closely monitored the situation because we understand that it creates valid concerns for individuals already in our service as well as those in need of tax debt resolution. The only factor that could make the government shutdown relevant to our tax resolution process is in the area of filing back taxes.

What We Know Now

  • According to the Trump administration, tax return processing will begin on Jan. 28
  •  46,000 IRS workers are being recalled to process tax returns
  • The progress of IRS tax collections activities is unclear but existing installment plans must still be honored  
  •  Tax return processing could possibly be slowed due to the partial shutdown

This is because the first step in the resolution of tax debt, even if someone decides to face the IRS themselves, is filing back tax returns. This perhaps is the most pressing concern for tax filing Americans and has raised the most questions. However, the Trump administration announced recently that tax filing season would begin on Jan. 28 and that individual tax returns would not be impacted despite the partial government shutdown.While this is not an indication about the end of the shutdown, the IRS’s ability to ensure that tax season would commence is based on the Treasury Department’s Lapsed Appropriations Contingency Plan. Based on this plan, the IRS is recalling 46,000 IRS workers to handle the processing of tax returns despite the fact that they have been furloughed and will not be paid.

The document also describes accepting tax refunds as necessary to “protect Government property, which includes tax revenue, and maintain the integrity of the federal tax collection process."

Tax refund season represents around $140 Billion that would be injected back into the American economy each year, which has the potential to impact many business sectors that drive our national economy.

If you currently have tax debt, don’t let the partial government shutdown discourage you from taking the necessary action to resolve your tax debt. Call Alliance Tax Solutions today 404-592-1227 and let us employ proven techniques to help you tackle your tax debt once and for. We don’t recommend trying to handle the IRS on your own. Our professional tax debt counselors have already helped thousands of people resolve their tax debt and they are standing by to assist you.  In most cases, our clients resolve their debt for far less than was initially owed.

 

 


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