The recent government shutdown was one for the history books, breaking the record for the longest in US history. For over a month, the federal government slowed to a crawl, and the IRS sent tens of thousands of employees home. But now that the doors are open again, the agency faces a considerable backlog of returns, notices, and collection cases it must work through.
If you owe taxes, this record-breaking shutdown may have introduced a lot of confusion to an already stressful situation. Highland Tax Group can help you understand how an IRS backlog affects your tax case and what you should do next.
What an IRS Backlog Really Means for Your Tax Debt
Even though the government shut down for 43 days, the IRS continued accepting mail and electronic submissions. The catch is that the agency had far fewer people to actually process the submissions and forms. Anything you sent to the IRS during the shutdown likely joined a long line of other taxpayer files waiting to be reviewed by a human.
Keep in mind that the IRS computers never took a break. Automatic notices or payment demands can still appear on schedule even if no one has reviewed your latest paperwork. Basically, the backlog delayed IRS responses without fundamentally changing your responsibilities under any existing IRS payment plan.
What To Do While the IRS Catches Up
This backlog period may be confusing, but it provides an opportunity to refocus and get back on track if your taxes aren’t in the best situation. Here’s what you should do:
- Make Your Payments: If you’re on a payment plan, stay on schedule. If you don’t have a plan yet, talk with Highland Tax Group about what you can safely pay now to slow down penalties and interest.
- Respond to the IRS: The IRS will eventually get back on its feet, and they may have already reviewed your submissions. Don’t let fresh envelopes pile up, and keep an eye out for IRS notices on whether the backlog affected your tax case in any way.
- Plan Your Next Move: This window gives you time to decide whether alternative options, like an Offer in Compromise, better fit your finances.
The IRS will eventually work through its backlog, but you don’t have to wait for that day to start fixing your tax problem. The enrolled agents at Highland Tax Group are here to help find the best resolution for your IRS tax debt during this confusing time.