Looming Governmental Shutdown
Our Government is scheduled to shut down at midnight September 30, 2023. This means that many necessary government functions will cease, as many governmental employees are furloughed until this latest round of silliness is over.
(This shutdown can be attributed to the House of Representatives inability to compromise across the aisle, and in this case, its inability to stop fighting with members of its own party)
(Excerpts below from https://www.cnbc.com/2023/09/27/what-a-government-shutdown-means-for-student-loans-social-security.html)
Will Social Security checks be issued during a shutdown?
Yes, Social Security is a mandatory program, not funded by the bill Congress needs to pass to keep the government up and running.
· Some services, including benefit verifications and Medicare card replacement, would be paused for the duration of a shutdown, but the agency will continue processing applications for benefits and requests for appeals, among other critical functions.
Will a Government shut down affect student loan payments?
· In short, no. Your federal student loan payment will still be due in October as the pandemic payment pause officially comes to an end. A government shutdown would not change that.
· The White House has warned that a shutdown could cause delays in some student loan processes, especially if it goes on longer than a couple of weeks. But for now, borrowers should still be ready to make a payment in October.
What about air traffic controllers? TSA and FAA agents?
· Workers staffed by the Transportation Security and Federal Aviation Administrations will stop receiving their paychecks during a government shutdown. Since they are essential workers, they will be expected to continue working, though they won’t get paid until the shutdown ends.
· Travel experts warn a prolonged shutdown could mean delays for travelers if absences among TSA and FAA agents tick up in response to a lack of pay, as happened during the 2018-19 shutdown.
How about the IRS?
(My editorial remark: We (CPAs) are just now digging out from the effects on businesses due to Covid. Only recently has the IRS started answering the telephones in a timely fashion. Only recently has it been able to start catching up on the massive backlog caused by the Covid virus. Well, hang on to your hats, because all that progress is about to come to a screeching halt if this shutdown lasts any significant amount of time)
Here is how the IRS will be affected (https://home.treasury.gov/system/files/266/IRS-FY24LapsePlan.pdf):
Brief summary of significant (IRS) agency activities that will cease during a lapse (for the first 5 days):
• Processing Non-Disaster Relief transcripts • Most Headquarters and administrative functions not related to the safety of life and protection of property • All audit functions, and examination of returns • Non-automated collections • Legal counsel re non-excepted activities • Taxpayer services such as responding to taxpayer questions (call sites) (during Non-Filing Season) • Information systems functions (except as necessary to prevent loss of data in process and revenue collections) • Planning, research, training, and development activities (except as necessary to perform excepted activities, e.g., filing season or needed to perform exempt activities)
After the first 5 days, IRS says:
Accordingly, in a shutdown during the filing season, the IRS must except additional positions beyond those identified in the Non-Filing Season Plan. In the event the lapse extends beyond five (5) business days, the Deputy Commissioner for Operations Support will direct the Business Continuity Officer to reassess ongoing activities and identify necessary adjustments of excepted positions and personnel. This IRS Lapsed Appropriations Contingency Plan includes: ◦ Special Activities and Situations - Identified activities continuing or that might be activated during the shutdown period such as legislated programs, disasters, or emergencies. ◦ Shutdown Preparation - Specific actions the agency has taken to assure efficient coordination of a shutdown should one occur, i.e., identifying continuing activities and support positions and personnel and documenting steps for implementing activities. ◦ Shutdown Implementation -The steps and activities IRS will take to initiate a shutdown, during a shutdown, and the communications to employees, managers, Treasury, Congressional staff, the National Treasury Employees Union (NTEU), media, and external stakeholders such as excepted contractors; will include, as appropriate, notification of shutdown, appeals rights, excepted activities and employees, and recall. ◦ Reactivation of Functions - The notification of funding and recall procedures and policies to coordinate employees’ return to work and any post-implementation bargaining.
