Tax Refunds Could Be Delayed Because of Government Shutdown
Currently the United States government is in a shutdown. This partial shutdown has lasted for almost two weeks and with it certain operations in the federal government have been shutdown.
One of the agencies that are experiencing a partial shutdown is the IRS. As tax season is around the corner, the concerns are growing as to how this will be handled.
Unfortunately, for all of those who file their taxes as soon as they receive all of the necessary forms, there may be a redelay in receiving their return. However, if you owe taxes from 2018 the money will be accepted by the IRS.
According to USA Today, “The agency has categorized issuing tax refunds as a "non-excepted" activity — meaning those tasked with processing refunds would be furloughed during a shutdown.” In that same article they explain that certain tax return processes will continue as usual, including processes returns for owed taxes deeming them as, "Necessary for the Safety of Human Life or Protection of Government Property."
A shutdown plan had been prepared by the IRS back in December which only allows for 12.5% of employees to work, while the rest are furloughed. This new plan may see revision over the course of the next few days, however with the new tax laws in effect their may still be a delay in refunds as a result of the shutdown and these new tax laws.
According to the Wall Street Journal, the IRS will “take your money,” but will not issue refunds nor will they conduct audits.
All hope is not lost, if the shutdown ends in the next few weeks there will be minimal effects to the tax filing season, which the IRS has yet to say when that will begin.