The Internal Revenue Service (IRS) has experienced several shutdowns in recent years, including a significant one in 2021. These shutdowns have impacted taxpayers and tax professionals in various ways.
2021 IRS Shutdown
The IRS shutdown in 2021 began on December 26, 2021, and lasted until January 16, 2022. During this time, the IRS suspended most of its operations, including:
- Processing tax returns
- Issuing refunds
- Answering taxpayer inquiries
- Conducting audits
Impact of the Shutdown
The 2021 IRS shutdown had a significant impact on taxpayers and tax professionals. Many taxpayers experienced delays in receiving their tax refunds, while others faced challenges filing their tax returns on time. Tax professionals also faced disruptions in their work, as they were unable to access IRS systems or obtain necessary information.
IRS Activities Following the Shutdown
After the 2021 shutdown ended, the IRS worked to resume normal operations as quickly as possible. The agency implemented a number of measures to minimize the impact on taxpayers and tax professionals, including:
- Extending the tax filing deadline for individuals and businesses
- Waiving penalties for late filing and payment of taxes
- Increasing staffing levels to process backlogged tax returns
- Providing additional resources for taxpayers and tax professionals
Current IRS Status
The IRS is currently fully operational and is processing tax returns and issuing refunds. However, the agency is still experiencing some delays due to the backlog created by the shutdown. Taxpayers and tax professionals are encouraged to be patient and to contact the IRS if they have any questions or concerns.
Annual IRS Maintenance Shutdown
In addition to the 2021 shutdown, the IRS also conducts an annual maintenance shutdown each year. This shutdown typically occurs in November and December and lasts for a few days. During this time, the IRS suspends e-filing and other online services. Taxpayers and tax professionals should be aware of the annual maintenance shutdown and plan accordingly.
The IRS shutdown in 2021 was a significant event that impacted taxpayers and tax professionals. However, the IRS has taken steps to minimize the impact of future shutdowns and is committed to providing essential services to taxpayers.
Additional Information
- The IRS website provides up-to-date information on the agency’s status and any upcoming shutdowns.
- Taxpayers and tax professionals can also contact the IRS by phone or mail for assistance.
Frequently Asked Questions
- When was the last IRS shutdown?
The last IRS shutdown occurred in December 2021 and lasted until January 2022.
- What impact did the shutdown have on taxpayers?
The shutdown caused delays in processing tax returns and issuing refunds. Taxpayers also faced challenges filing their tax returns on time.
- What impact did the shutdown have on tax professionals?
Tax professionals faced disruptions in their work, as they were unable to access IRS systems or obtain necessary information.
- What is the annual IRS maintenance shutdown?
The annual IRS maintenance shutdown is a brief period each year when the IRS suspends e-filing and other online services.
- How can I stay informed about IRS shutdowns?
Taxpayers and tax professionals can stay informed about IRS shutdowns by visiting the IRS website or contacting the IRS by phone or mail.
2023 IRS TAX REFUND UPDATE – NEW Refunds, IRS SHUTDOWN, Tax Refund Delays, Amended Returns, TPG
FAQ
Is the IRS still working on 2021 tax returns?
Is the IRS affected by government shutdown?
What happens if the IRS shuts down?
Is IRS shutting down Efile 2021?
Why did the IRS shut down in 2020?
The unprecedented backlog started in March 2020, when the pandemic caused the IRS to shut down its offices for health and safety reasons — during the middle of tax season for 2019 tax returns. Paper tax returns filed for the 2019 tax year were stored in trailers until IRS employees could get to them.
When will the IRS e-file shut down for 2021 tax returns?
Acknowledgments not retrieved by 11:59 p.m. on November 20th cannot be accessed until the IRS comes back online in early January 2021, when MeF opens for production for the 2021 tax year. Business Returns are not affected by this schedule. The IRS has not yet announced the e-file shutdown for these returns but is expected to do so shortly.
Will 2020 tax returns be E-filed during the shutdown?
Tax year 2020 individual returns will not be able to be e-filed during the shutdown. E-Filing for all 2020 returns will be shut down on 12/20/2023 at 6 PM PST. Tax year 2021 and 2022 individual returns will not be able to be e-filed during the shut down but will resume when the IRS re-opens for the tax year 2023 filing season.
What happened to paper tax returns in 2021?
Paper tax returns filed for the 2019 tax year were stored in trailers until IRS employees could get to them. At the start of the tax season in 2021, the IRS was still working through those paper returns from the 2019 tax year. That meant it was already dealing with an existing backlog when it began accepting 2020 tax returns in February.