October 10, 2013 1:43 pm

Government Shutdown

The government shutdown that began on October 1 impacts IRS activities. Here is what the shutdown means for you:

Taxpayers must do: Still file returns on time and pay taxes due. This means anyone with a filing extension for 2012 returns must file no later than October 15, 2013. E-filing is still available. Payments can still be made using EFTPS.gov. However, if you are owed a tax refund, it will not be issued at this time; refunds will be issued after the shutdown has ended.

What the IRS will not do: The IRS has suspended its audit and collection activities. This means that if you are already under examination, nothing will happen until the shutdown is resolved. Pending appointments will be rescheduled at a future date. If you were about to become subject to a levy or other IRS collection activity, you have breathing room until the IRS is again in full operation. Only emergency seizures or other special collection activities will continue.

Taxpayers who want to obtain a transcript of a prior return (e.g., for a home mortgage application) will not be able to at this time.

Bottom line: Once the shutdown has ended, the IRS will get back to normal operations. How long this will take remains to be seen.

Source: http://www.irs.gov/uac/Newsroom/IRS-Operations-During-The-Lapse-In-Appropriations

Tax Glossary

Principal residence

On a sale of a principal residence, you may avoid tax under the rules.

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