IRS contingency plan during possible government shutdown
Fiscal Year 2024 Lapsed Appropriations Contingency Plan
Fiscal Year 2024 Lapsed Appropriations Contingency Plan
The IRS today released a “Fiscal Year 2024 Lapsed Appropriations Contingency Plan” [PDF 2.2 MB] in anticipation of a possible lapse in funding if Congress fails to pass legislation to continue funding a substantial portion of the government past September 30, 2023.
Although the unfunded agencies would include the Department of Treasury and IRS, the IRS plan notes that in fiscal year 2024, the IRS has available multi-year funding under H.R. 5376 (commonly called the “Inflation Reduction Act” (IRA)) and would use that funding for the activities outlined in its plan.
- The plan indicates that 33.4% of IRS employees would be designated as “excepted/exempt” during the non-filing season (which includes October 1, 2023, through December 31, 2023) and would be retained during a lapse in appropriations.
- The IRS would also continue activities to implement the green energy credit provisions of the IRA, activities that implement the IRS IRA strategic operating plan and the direct file pilot program.
With respect to the Office of Chief Counsel in particular, it appears that some of the employees would be retained despite the lapse in government funding.
Still, many, and perhaps most, other functions would remain unfunded and suspended until Congress and the president reach an agreement on funding. These could include the audit and exam functions and those IRS personnel responsible for fielding and answering taxpayer questions.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.