The Internal Revenue Service (IRS) recently issued a significant alert to millions of American taxpayers. The alert pertains to those who had filed for an extension earlier this year, notifying them of the approaching mid-October deadline for filing their tax returns.
“To avoid a possible late filing penalty, those who requested an extension to file their 2022 tax return should file their Form 1040 on or before Monday, Oct. 16,” the agency wrote on Sept. 29.
Certain individuals impacted by various natural disasters have been granted extended deadlines. The IRS release stated that those affected by flooding in Vermont have until Nov. 15, while victims of the Maui fires in Hawaii and Hurricane Idalia in Florida, Georgia and South Carolina have until Feb. 24, 2024, to file their 2022 tax returns.
The looming Oct. 16 deadline also applies to taxpayers in most of California, Alabama and Georgia who fall under a disaster exemption. Extensions have been granted to residents of 55 California counties and taxpayers in Alaska and Illinois impacted by recent flooding, with a new deadline set for Oct. 31.
A day before the IRS issued its release about the Oct. 16 deadline, the U.S. Treasury Department, which oversees the IRS, released a contingency plan that includes furloughs for about 60,000 IRS employees, or about two-thirds of its workforce.
“Taxpayers would be completely unable to contact most IRS employees during the shutdown,” Charles Rettig, a former commissioner of the IRS, said. He also highlighted the long-term impact of a shutdown on the IRS’s operations and its employees.
“Don’t overlook the impact on the employees or future recruitment effort[s],” Rettig said.
Amid these concerns, the IRS is also planning to implement “sweeping, historic” enforcement measures using artificial intelligence to target tax evaders, as announced weeks prior.
“There is a sea change taking place at the IRS in every aspect of our operations,” IRS Commissioner Danny Werfel said.
Despite the numerous challenges and changes, the IRS maintains its commitment to enforcing the nation’s tax laws and ensuring compliance, while also providing necessary accommodations and extensions to those in need. The situation remains fluid, with the potential government shutdown and the approaching tax deadlines creating a complex scenario for both the IRS and American taxpayers.
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