When the IRS shuts down, a lot of people breathe a little easier, and you may have missed an IRS deadline. It can almost feel like your tax problem itself is on pause. But even if the shutdown provided a sense of reprieve, the truth is that your tax obligations never went away. The government still wants its money, and the IRS still expects you to follow the rules, especially when it comes to deadlines.
You’re not alone if you missed an IRS deadline during the federal shutdown. The good news is you have options, and Highland Tax Group can help you get back on track.
Issues With Missing an IRS Deadline
An IRS payment plan or resolution agreement is a legal contract with very specific terms. When you agree to an installment agreement, for example, you promise to:
- Make payments on time and in full.
- Stay current with all future tax filings.
- Avoid new unpaid balances.
When you miss a deadline during the shutdown, the IRS can treat it as a default or violation of your agreement. That opens the door for the agency to terminate your existing payment plan, introduce additional penalties and accrued interest, or possibly ramp up collection efforts through wage garnishment.
Even if you sent the payment or filed before the shutdown concluded, the IRS can still treat that late action as a problem. The fact that a payment eventually posts doesn’t erase the late mark in their system or undo any penalties that kicked in due to the delay. Assuming that everything will work itself out may eventually lead to much bigger issues down the line.
All that being said, you aren’t out of options. At Highland Tax Group, we help clients who missed deadlines request relief where possible and demonstrate to the IRS that they’re committed to getting back into compliance. Our team of qualified enrolled agents can work with you to build a realistic plan, so you don’t miss future due dates, no matter what curveballs the federal government throws your way.