Is the Internal Revenue Service closed for business? Could this be the sign you see when you try to reach a federal government office this week? Yes, a Federal Shut Down began October 1, 2013. This is the same day the Patient Protection and Affordable Care Act, or “Obamacare” was to begin. This is also the first day of the United States’ Fiscal Year. Most of us work on a calendar year basis, January 1 through December 31. The government’s fiscal year begins October 1 and runs through September 30 of the following year. When I worked for the IRS in 1979, we experienced a government shutdown. Like today, our government leaders were at odds and could not agree on our laws. How would our government move forward? During that shutdown, only certain “essential” employees were expected to still come to work. Was I one of those essential employees? We were told to go home at lunch and listen to the newscasts. I had one afternoon to wonder… was that a day to party?  NO, it was a day to worry.  Would I have to get up early the next day or could I sleep in? Like today, I traded my time for dollars and I needed those dollars to pay my bills. I was an auditor. I went to work the next day. My co-workers were temporarily furloughed without pay. There is so much affected when the government shuts down. Some services, like national parks and museums, will completely shut down. Some offices will be cut back and others, like public safety, air traffic controllers will have business as usual. The Post Office gets its money from the sale of stamps so fortunately we will still have mail service. Where does the IRS fit into all of this?  Well, don’t call the IRS with a question. Customer Service is closed. Audits, already started, will be suspended and for now, no new audits will begin. Don’t worry though, your tax payment will always be accepted and the filing of your tax returns will continue. If you filed an extension for your tax return, the extended due date for your 1040 return is still October 15th and if you don’t file by that date, well – it is just plain late. What does the IRS have to do with Obamacare?  Did you know that the IRS is charged with the responsibility of seeing that every American taxpayer proves they have medical insurance? Yes, so that means there will be a new form for me to include with your tax return. Beginning January 2014, taxpayers who choose not to have medical insurance will pay a fine and they will be subject to a penalty imposed on your income tax return. This penalty will be the greater of $95 per person each year, OR 1% of the household income. People who are temporarily unemployed, people who are on Medicaid (not medicare) or people who live in a state that has opted out of the new expanded program, such as Texas, Pennsylvania or Wisconsin, will be exempt from the penalty. Is this one of the laws that our Congress is battling over? Yes!  Is Obamacare still going to be mandated? We don’t know only time will tell. One thing is certain. We need to know what might be ahead so we can plan. Plans can change. Ignorance is expensive. If you are not aware, you are at risk of paying more than you expected.