If the US government were to shut down later this week this would cause a slower processing of tax returns and limit small business loans and government-backed mortgages during peak home buying season.
The last such shutdown began in 1995 and went on for 3 weeks.
Taxpayers would remain responsible for filing and paying their taxes on time which is April 18 this year given a local holiday in Washington. Tax audits will be not occur during a potential shutdown.
The IRS also will not process any paper returns during a shutdown. About thirty percent of tax filers still use paper returns. Tax filers who expect a refund should file their returns electronically and ask that the money be deposited directly into their bank accounts. While taxpayers will still be required to properly ask the help lines for the IRS will not be staffed.
Social Security payments will continue to be delivered, and applications for benefits will continue to be processed. But some services will be limited, Social Security Commissioner Michael Astrue said.
If the shutdown goes on for an extended time though there would be problems with any changes in address, status or changes.
Medicare would still pay medical claims for its 48 million recipients, who are mainly seniors but also several million younger people who are permanently disabled or have kidney failure. Payments to
The Federal Housing Administration, which guarantees about 30 percent of home mortgages, would stop guaranteeing loans. The issuance of government backed loans to small businesses would be suspended, according to the White House.
The Obama administration said the impact on the housing market would be more significant than during the last shutdown since the Federal Housing Administration accounts for 30 percent of the mortgage market, almost triple the amount 16 years ago during the prior shutdown.
Source Huffington Post
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Posted by: Palm Beach County Housing Authority | May 26, 2011 at 06:03 AM