The Government Shutdown and the IRS

With the government shutdown in full swing and no end in sight, taxpayers are wondering what this means for tax season. The government shutdown has the IRS operating on a small skeleton staff that is approximately 12% of its usual force. This staff is going to continue to process returns, but refund checks will not be issued until the government fully reopens. The government is reminding American’s that despite the shutdown, your taxes are still due.

Could Delay Refunds

Depending on the length of the government shutdown, this could have an impact on consumer spending. Most people who file right away in January are expecting a refund, late filers tend to owe taxes. With a shutdown at the beginning of tax season, it has a greater impact on those who filed promptly and may have intentions for their anticipated returns.

Processing Tax Refunds

As of January 7, 2019, the White House issued a statement that the IRS will continue to process tax refunds. However, the statement was not accompanied by any plan of action or mention of ramping up staffing.

In addition to the delay in processing tax returns, the IRS also does not currently have the resources to perform audits or answer off season tax questions or issue refunds.

Those who are intending to use their tax returns to pay off debt or file for bankruptcy can expect a delay in their refunds. For more information contact your local Modesto bankruptcy attorney.