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US Government Shutdown Hits IRS: What Does It Mean For Crypto Tax Services?
Yahoo Financeยท 2025-10-09 01:15
Core Points - The ongoing US government shutdown has led to the IRS furloughing nearly 34,000 employees, significantly impacting its operations [2][5] - The IRS has scaled back most operations, which will affect crypto tax services, leading to reduced taxpayer assistance and increased backlogs [1][4] - The shutdown does not alter tax deadlines or legal requirements for taxpayers, who must still file and pay taxes by the due dates [6] Impact on IRS Operations - The IRS will send home call center representatives, IT staff, and most headquarters personnel, which is expected to severely affect customer service [2][4] - The furlough will result in a sharp reduction in customer service and live support, making it difficult for cryptocurrency users to obtain necessary tax clarification [4][5] - Ongoing tax disputes and audits related to cryptocurrency reporting will experience significant delays due to the staffing reductions [5] Consequences for Crypto Tax Services - The IRS is in the process of developing new reporting requirements for digital assets, but the prolonged shutdown may delay the finalization of this guidance [6] - If the shutdown continues, crypto taxpayers will face a challenging and confusing environment for tax filing [7]