IRS will not issue refunds during partial government shutdown

08 January, 2019, 00:39 | Author: Kevin Carter
  • Trump’s shutdown could delay your early tax refund — but it’s not a problem for the rich

Across the federal government, about 800,000 federal workers have been unpaid as Trump withholds his support for a bill which would fund the government until he secures the money for the wall that he promised during his election campaign.

Each year on April 15, tax procrastinators frantically gather paperwork and file their returns before the deadline.

The IRS can not process taxes if the government is still shut down; which means you may not see your tax refund as soon as previous years. -Mexican border. As a result, about 800,000 federal workers have been unpaid due to the closure of about a quarter of the federal government.

If you need help, anyone who calls the IRS number in Fort Worth to make an appointment hears a message noting that "live telephone assistance is not available at this time".

And, more broadly, the remaining 12.5 percent of IRS employees still working are mostly those classified as serving "in the protection of life and property".

But depending on how long the shutdown lasts, there could be some problems. An analysis by UBS estimated an overall increase of $42 billion to $66 billion in tax refunds this year over 2017. Although tax filing season starts in January, the IRS typically takes a few weeks to start getting refunds out. However, if the halt continues, people won't get a refund until the government reopens.

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One group that could be affected: those still waiting on tax refunds from before 2018.

As the government remains closed, worry spreads about what this means for us, the taxpayers.

Meanwhile, the IRS will also stop several other functions: audits, return examinations, non-automated collections, and 1040X processing, among other operations.

The Wall Street Journal reported that by February 2, 2018, the IRS had paid $12.6 billion in refunds to more than 6 million households and by February 16, that figure increased to $101.2 billion for almost 32 million households.

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. That work is likely to be stalled by a shutdown.

The IRS directed ABC News to the lapsed contingency plan in response to further questions.



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