Professionals say file taxes early despite government shutdown
08 January, 2019, 00:38 | Author: Sally Reid
A notice on the door of the IRS Tax Assistance Center on N. Woodlawn in Wichita reads it will not reopen until the partial government shutdown ends.
While many Americans who rely on a refund to offset holiday costs or give them a beginning-of-the-year boost, President Donald Trump has said he will keep the government closed until Democrats agree to fund the border wall.
"I think people are wondering when this is going to end and how this affects the IRS's ability to process returns and process refunds". "Those temporary workers are out of work due to this shutdown".
And what if the government shutdown continues deep into tax season?
That is what callers to the IRS hotline heard and will continue to hear when calling the government agency's hotline with a tax question.
The agency is now operating with only 12.5 percent of its workforce, with 10,000 federal employees due to the partial government shutdown.
Typically, lower-income taxpayers who have no federal tax liability file their tax returns as soon as possible in January, and expect to receive refunds by February. An analysis by UBS estimated an overall increase of $42 billion to $66 billion in tax refunds this year over 2017. While the document notes the plan can be reassessed and furloughed employees can be recalled, The Wall Street Journal reported Wednesday and CNN reported Thursday that the IRS generally does not issue refunds during a shutdown.
The agency received two years of funding to implement the new tax law, so some of those activities including devising worksheets and tax forms along with instructions and publications have continued.
The IRS directed ABC News to the lapsed contingency plan in response to further questions.
He believes the main impact will be felt by taxpayers who are due refunds, but he says there is a solution.
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