Millions of Americans who rely on tax refunds after the expensive holiday season are concerned what effect the government shutdown will have on their personal finances.
Wichita, United States - January 29, 2019 /PressCable/ —
Beginning at midnight on December 22, 2018, the United States government was forced into a shutdown. Because of this, many government-run businesses and agencies were forced to close their doors and reduce staff, leading to an unfortunate decrease in the country’s overall functionality and efficiency.
Furloughed workers – employees who aren’t essential or required to work during the shutdown – and closed doors means many government agencies were either not available or simply didn’t have the manpower to complete their tasks during the shutdown. And with the beginning of tax season drawing near, US citizens are beginning to wonder: how will the government shutdown affect tax returns? Many are relying on these tax returns to accommodate expenses after the holiday, and with the government in disarray, individuals looking forward to their refund may be experiencing some doubts.
Thankfully, on January 7th, the Internal Revenue Service, or IRS, officially confirmed that it will still be processing tax returns as scheduled, despite the government shutdown. They began accepting returns on January 28th.
However, this doesn’t mean taxpayers are in the clear just yet: until lawmakers in Washington DC can come to an agreement, the government will remain shut down. The government, though currently open, may face another shutdown in the near future. This will continue to have an immediate effect on federal agencies.
The IRS is just one of the many agencies affected. Most of the IRS’ employees were furloughed, meaning they weren’t expected to show up for work during the shutdown. According to Yahoo! Finance, only 12% of the IRS’ staff was still on hand. Being shorthanded so close to tax season will likely leave the IRS unprepared for the influx of tax returns.
While the IRS has said tax returns will be going out on time, it’s best to prepare for potential setbacks. Since the IRS, and the government in general, is still recovering from the shutdown, answering every question from taxpayers will be more difficult than ever. CNBC documents that the IRS reportedly “gets more than 95 million calls on its toll-free lines each year.” It can be expected that getting on the phone with the IRS won’t be easy. And that isn’t the only thing the IRS has to worry about this year.
2019 was already expected to be a rough year, due to major changes to the tax code. The following things have been changed:
· Tax rates
· Alimony payments
· Business income
· Charitable and medical deductions
· Child tax credits
· Estate-planning
Be prepared for a surprise when filing your taxes this year, as many things may be different. And if you do have a question, you may be better off contacting other tax resources, such as a financial planner or an online tax filer (like HR Block or TurboTax), rather than making a phone call to the IRS. The IRS website will also have a multitude of resources available to you if you find yourself with any questions.
The bottom line:
· The government did just experience it’s longest shutdown ever, but the IRS says your tax returns will still be handled on time.
· The IRS began accepting tax filings on January 28th, 2019.
· It may be difficult to receive government assistance in the coming weeks due to agencies being swamped with work from the shutdown.
· Changes to the tax code go into effect this tax season.
To keep an eye on developments regarding tax returns this tax season, check the IRS Newsroom regularly for any updates straight from the IRS.
Contact Info:
Name: Ariel Burress
Email: Send Email
Organization: Net Pay Advance, Inc.
Address: 455 North Maize Court, Wichita, Kansas 67212, United States
Website: https://netpayadvance.com
Source: PressCable
Release ID: 477219
