During the government’s shutdown — the country’s tax collector has been one of the federal agencies affected by the two-weeks-and-counting-shutdown.
Currently, the Internal Revenue Service is operating under non-filing season shutdown plans and as soon as Friday, will be allegedly updating it ahead of the upcoming tax season according to a person who is knowledgeable on the issue.
But that being said, this could definitely make this year’s tax season complicated to say the least.
Usually, the IRS does not perform audits, pay refunds or offer assistance to taxpayers during a shut down and especially so if it is outside the filing season.
The agency currently is operating on bare bones, with only 12.5% of its workforce which equates to less than 10,000 federal employees.
“It does throw a little bit of wrench into things,” the economist at the Tax Foundation, Kyle Pomerleau, shared. “To the extent that individuals are relying on the refund any delay is going to be a negative.”
Usually, tax filling season begins in mid-January and if – if being the key word – the shutdown is resolved by then, it may have an impact on taxpayers.
The IRS has not yet announced when exactly both individuals as well as businesses can start to submit their respective income tax returns.
But those who are not receiving money they are owed will contribute pressure to both Trump as well as lawmakers to come to a deal and fast.
Many look to their tax refunds to help cover expenses or help with their yearly savings. And those who need their refunds the most are usually the ones who file first during the January to April tax season.
And the delay couldn’t have had more poor timing as their will already be another layer of complexity as individuals as well as corporations will deal with new tax law changes.
“This filing season was always going to be challenging,” said Pomerleau. “The IRS was still figuring that out. Individuals were still figuring that out even with the full funding.”
The agency had recently received two years worth of funding to help aid with the new tax law — including activities that devising worksheets and tax forms, paired with instructions and publications.
But amidst the halt, the agency will not able to take calls from businesses according to Alice Jacobsohn at the American Payroll Association.
This includes questions on how the new tax law may have changed things for this year’s W-2 forms, forms that must be sent out by the end of January.
Currently, those who call the IRS with questions are met with an automated message, saying:
“Welcome to the IRS. Live telephone assistance is not available at this time. Normal operations will resume as soon as possible.”
Until you are able to file, be sure to have these few steps completed so you can get your refund quickly..
Be sure gather up all your tax forms and paperwork. This includes your W-2s as well as any other income statements.
Also remember to determine your filing status as well as if you are planning on claiming any dependents.
For more information, you can read up here.
Odds are, you will have enough time to get through all of the information at the government’s rate….
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