The Taxpayer Advocate Continuity Act ensures the IRS can continue providing essential relief to taxpayers facing financial hardship during government shutdowns.
Thomas Suozzi
Representative
NY-3
The Taxpayer Advocate Continuity Act ensures that the IRS can continue providing critical assistance to taxpayers facing severe financial hardship during a government shutdown. By authorizing the IRS Commissioner and the Taxpayer Advocate to spend necessary funds despite a lapse in appropriations, the bill guarantees that essential taxpayer protections and assistance orders remain operational during budget impasses.
IRS Hardship Services to Remain Open During Government Shutdowns Under New Taxpayer Advocate Continuity Act
When the federal government hits a budget stalemate and shuts down, most IRS services grind to a halt, leaving taxpayers in limbo. The Taxpayer Advocate Continuity Act changes the rules of engagement by allowing the IRS Commissioner and the National Taxpayer Advocate to keep the lights on for the most vulnerable cases, even when Congress hasn't passed a budget. Specifically, Section 2 of the bill carves out a legal exception to the Antideficiency Act—the law that usually forbids agencies from spending money they don't have—to ensure that help remains available for those facing 'economic hardship' as defined under section 6343(a)(1) of the tax code.
A Safety Net for Financial Emergencies
This isn't about keeping every local IRS office open for routine questions; it’s a targeted strike team for financial crises. For example, if a small business owner has their bank account levied by mistake and can't make payroll because the IRS office is closed during a shutdown, this bill allows the Taxpayer Advocate to step in and fix it. By authorizing spending specifically to address hardships caused by IRS action (or inaction), the bill ensures that a political standoff in D.C. doesn't result in a personal financial catastrophe for a family or a freelancer who needs an immediate resolution to an administrative error.
Enforcing the Law When the Doors Are Locked
Beyond general hardship, the bill mandates that the IRS must continue to comply with Taxpayer Assistance Orders (TAOs) during a funding lapse. Under section 7811 of the Internal Revenue Code, these orders are issued when a taxpayer is suffering or about to suffer a significant disadvantage. In the real world, this means if you already have a legal order in place to stop a wage garnishment or release a lien, the IRS can't use a 'closed' sign as an excuse to keep taking your money. The bill ensures these legal protections remain enforceable 24/7, providing a crucial layer of accountability that doesn't disappear just because the federal budget expired.