Oct. 3 – The U.S. federal government has shutdown operations on October 1st because Congress did not pass a government funding bill. As a result, tens of thousands of IRS employees have been furloughed and the IRS will only maintain core functions. Tax filing deadlines remain the same and payments are still due in a timely manner despite the shutdown.
During the shutdown, the following operations will cease:
- Refunds will not be issued and the “Where’s my refund” service that is normally available on the IRS website will not be available.
- Audit functions and examination of returns will cease.
- Taxpayer and practitioner assistance will not be available and Taxpayer Assistance Centers (TAC) will be closed.
- There will be no processing of paper returns that do not require remittance.
The following core functions will remain available during the shutdown:
- Processing of electronic returns.
- The Electronic Federal Tax Payment System (EFTPS) will remain operational during the shutdown.
- Notices will continue to be generated; however, there will be no employees available to make corrections or answer questions regarding notices.
For those individuals who previously extended their tax returns in April, the filing deadline remains October 15th.
Dezan Shira & Associates‘ American clients in China and elsewhere in Asia have stated there has been “no impact yet” on their operations back in the States, saying that the shutdown is mainly affecting non-essential services and staff in the country. One of the firm’s engineering clients stated, “The projects that our business units have with the U.S. government are covered by legally binding contracts and these will be honored.”
However many stated that the effect on the American economy and available budgets will be larger if it takes longer to resolve the issue. Another U.S. client with a large manufacturing facility in China stated, “This could result in some of our American domestic customers starting to feel a pinch, which will have a knock-on effect on us in China as they start to cut back on spending and defer projects.”
Dezan Shira & Associates maintain an liaison office in Boston. Meanwhile, the firm’s International Managing Partner, Chris Devonshire-Ellis, will be undertaking a significant U.S. tour to discuss investments into China, India, Singapore, Hong Kong, Vietnam and the rest of emerging Asia from next month. He is also scheduled to be at the annual APEC CEO conference in Bali next week at which U.S. President Barack Obama has been expected to speak about U.S.-Asia relations.
Devonshire-Ellis’ U.S. schedule takes in Seattle, San Diego, San Francisco, Miami, New York, Boston, Cincinnati and Chicago and can be viewed in full here. Readers wishing to meet Chris and discuss matters regarding U.S. trade and investment into China, India, Vietnam and Asia may arrange a complimentary one-on-one meeting with him by emailing Jessica Tou at email@example.com.
This article was first published on China Briefing.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.