Will the Government Shutdown Affect Your Tax Return?

Will the Government Shutdown Affect Your Tax Return?

How will the government shutdown affect your tax refund?

With tax season quickly approaching and the government shutdown continuing with no clear end in sight, many are wondering how their tax returns will be affected.

In previous shutdowns, issuance of tax refunds has been put on hold, but the IRS has confirmed that returns will be processed–and refunds will be issued-despite the government shutdown. They announced earlier this week that the individual electronic filing season will begin on January 28th as planned.

This filing season is anticipated to be increasingly complex due to the passing of the Tax Cuts and Jobs Act in December 2017, which is one of the largest pieces of tax legislation to pass in the past three decades.  Many of the provisions of that Act came into play for the first time in 2018.

With only 12% of the IRS staff currently working, and the rest furloughed, many are fearful of significant delays in the processing of their returns. IRS Commissioner, Chuck Rettig, has announced that a more formal contingency plan for the shutdown will be released later, but did indicate that a “significant portion” of the IRS staff would be recalled closer to the Jan 28th tax filing season start date.

Should the government shutdown continue into tax filing season, we can certainly expect to see reduced support and service from the IRS, as most staff that is recalled from furlough will be processing returns and refunds. More details about essential personnel and plans for returns and refunds will be available when the IRS releases their updated Lapsed Appropriations Contingency Plan as the January 28th date approaches.

Want to learn more about the impact the Tax Cuts and Jobs Act has on your taxes? Join us for our upcoming BOSS seminar: Postcards are for Vacations (Not Tax Returns). Register here. 

We encourage you to reach out to your trusted WK advisor for more information about how the shutdown may impact you.

Posted 1-11-2019 | Topics: Featured News & Resources, News,