Randomness (r_ness) wrote,
Randomness
r_ness

You still have to file your taxes even if the IRS shuts down.

It's looking more and more likely that the federal government will be shutting down as of Friday midnight. And no, this does not mean you get more time to file your federal taxes. They're still due on April 18th (because D.C.'s Emancipation Day holiday is on the 15th).

Most of you have already filed, but if you haven't, IRS Commissioner Doug Shulman recommends you file electronically:
People really should file electronically because most of these returns are processed automatically and will not experience any delays. However, taxpayers who file paper returns will experience some delays if we end up in a government shutdown.
Another potential IRS shutdown related effect will be on mortgage closings. From http://www.bankrate.com/financing/mortgages/irs-shutdown-would-delay-mortgage-closings/:
Borrowers sign IRS Form 4506-T, which allows lenders to get transcripts of borrowers' tax returns.

It then takes the IRS 24 to 48 hours to return the verified transcript, which is required at closing.

But guess what? IRS employees won't be at work to verify the forms if there is a shutdown.

Mortgage brokers and lenders are advised that the IRS will not process 4506-T forms during the shutdown, according to Rob Nunziata, president of FBC Mortgage in Orlando, Fla.

"If there is no one at the IRS to verify these, I don't know what can be done," he says. "If we can't verify their income we can't close their loan."

It is not clear yet if Fannie and Freddie are planning to make an exception in the event of a shutdown.

But to be safe, borrowers who have a closing scheduled should check with their lenders or mortgage brokers and make sure their income has been verified by the IRS. If not, they should try to do get it done by Friday.
ETA: No shutdown, or so it appears. But you should still make sure everything gets done.
Tags: money
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