A government shutdown can result when there’s a disagreement regarding the budget. Only services that are deemed essential, such as Social Security and Medicare, are allowed to continue during a shutdown until new funding legislation is signed into law. But taxpayers’ obligations are largely unaffected.

The Appropriations Subcommittees

The 12 Appropriations subcommittees that rely on Congress to pass budget legislation are:

Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related AgenciesSubcommittee on Commerce, Justice, Science, and Related AgenciesSubcommittee on Department of DefenseSubcommittee on Department of Homeland SecuritySubcommittee on Department of the Interior, Environment, and Related AgenciesSubcommittee on Departments of Labor, Health and Human Services, Education, and Related AgenciesSubcommittee on Energy and Water DevelopmentSubcommittee on Financial Services and General GovernmentSubcommittee on Legislative BranchSubcommittee on Military Construction and Veterans Affairs, and Related AgenciesSubcommittee on State, Foreign Operations, and Related ProgramsSubcommittee on Transportation, Housing and Urban Development, and Related Agencies

Filing Taxes During a Shutdown

You don’t have to wait to file your tax return during a government shutdown. You can prepare and send it in as soon as you have all the required documents, such as Form W-2 and 1099. As always, the sooner your tax return is in line with other received returns awaiting processing, the sooner you’ll receive your refund if you’re due one. Send a check if you owe the IRS money, but you might not want to submit a paper return if you don’t owe anything and you’re anticipating a refund. You’re likely to get your return processed faster if you e-file. Returns must still be filed by Tax Day during a shutdown, which is normally April 15. Tax Day becomes the next business day in years when April 15 falls on a weekend or a holiday. You’re still legally obligated to file and pay on time, even when Congress is squabbling.

How Shutdowns Affect Tax Returns

The IRS is part of the Treasury Department; therefore, it’s affected by government shutdowns from operational and logistic standpoints. The Office of Management and Budget (OMB) took the position during the threat of a 2011 shutdown that the IRS could not pay refunds during a budgetary lapse. However, the OMB reversed that opinion in 2019, agreeing with the IRS that 31 U.S. Code Section 1324 does indeed provide for “payment of all tax refunds through a permanent, indefinite appropriation.” As a result, the IRS received more than five million pieces of mail to process during the government shutdown from December 2018 to January 2019. The IRS Automated Collection System line was only able to answer 38% of calls it received when the government reopened, with an average wait time of 48 minutes. Answered calls were 65% in the previous year, with an average wait time of 19 minutes.

The Bottom Line

You shouldn’t delay filing your tax return or stop having taxes withheld from your paycheck when or if the government shuts down. Your duties and responsibilities as a taxpayer are largely unaffected, so you should go about tax season as you normally would. You’ll still owe the same amount when the government is up and running again, and your refund might end up being delayed because some IRS staff were unable to work.