Economy

Government shutdown could impact tax refunds

Government shutdown could impact tax refunds”

What's happening: USA Today reported the partial government shutdown - caused by a deadlock in negotiations between President Donald Trump and Congress over border security - could cause the Internal Revenue Service to delay issuing refunds to taxpaying Americans.

The message also states that "normal operations will return as soon as possible".

The IRS is now working under non-filing season shutdown plans and will be updating it ahead of the upcoming tax season as soon as Friday, according to a person familiar with the matter.

"It's a huge deal", said James Gundersdorff, an accountant in Durham, N.C. told ABC affiliate WTVD.

Even so, most refunds likely won't be processed until the federal government - particularly the IRS - is up and running at full speed again.

"A lot of people do have a lot of money sitting on the table and they will not get that money any time soon", Gundersdorff said. Right now, the IRS is working under a contingency plan for the non-filing season that has it operating with only 12.5% of its employees. Calls to the Treasury Department went unanswered.

However: Several tax returns have been called "Necessary for the Safety of Human Life or Protection of Government Property".

The shutdown plan cuts staffing at the IRS by 88 per cent, and the agency will not conduct audits or answer taxpayer questions under the current shutdown plan.

That stalemate raises the prospect of an unprecedented extended closure during the individual income-tax filing season, which typically starts in mid-to-late January.

This means that adding to the activities above, the agency will continue collecting taxes throughout the shutdown.



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