Washington, D.C. (September 28, 2023) – The American Institute of CPAs (AICPA) submitted a letter to the Department of the Treasury, the Internal Revenue Service (IRS) and Congressional leadership requesting the release of the IRS contingency plan that would go into effect in the event of a government shutdown on October 1, 2023. Additionally, the AICPA has urged the IRS to base any decision to furlough employees on a broader interpretation of the Office of Management and Budget guidance to include not only the government’s safety of human life and protection of property, but also for the taxpayer, thereby excepting IRS employees.
“We believe that tax practitioners, a critical stakeholder and partner with the IRS, should have the opportunity to provide feedback on, as well as prepare for, the IRS’s plan, and possibly advise their clients on potential consequences of a shutdown,” the letter says.
The letter goes on to express concern that an October shutdown of the government will likely impact the timely processing of extended 2022 tax returns due by Oct 16, 2023, tax-exempt organization returns due November 15, 2023, and expatriate tax returns due December 15, 2023, as has happened with previous government shutdowns.
“We are deeply concerned that a government shutdown with the IRS operating at only a fraction of what is deemed to be its essential workforce would result in a huge strain on taxpayers and practitioners,” says the letter, highlighting the various impacts that a drastically reduced workforce would have on taxpayers and practitioners.
“We recognize that processing of tax returns and collection of money is a critical government function that should continue regardless of a government shutdown. Therefore, at a minimum, taxpayers should have recourse to protect their rights and property. The IRS keeping more essential positions working during the shutdown would help make the 2023 extended filing season operate as smoothly as possible and allow for a smooth start to the 2024 filing season,” the letter notes in closing.
About the American Institute of CPAs
The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with more than 421,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. AICPA sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives continuing education to advance the vitality, relevance and quality of the profession.
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Contact: Veronica L. Vera
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