Published: Mon, January 07, 2019
Markets | By Erika Turner

IRS will not issue refunds during partial government shutdown

IRS will not issue refunds during partial government shutdown

The Internal Revenue Service (IRS) building stands in Washington, D.C., U.S., on Wednesday, April 6, 2011. "Every year the IRS hires temporary workers to help process tax returns", she said. While the document notes the plan can be reassessed and furloughed employees can be recalled, The Wall Street Journal reported Wednesday and CNN reported Thursday that the IRS generally does not issue refunds during a shutdown.

"The commissioner's going to have to make a call: What does this mean for the beginning of the filing season?" said Mark Mazur, who was the top Treasury tax-policy official under President Barack Obama.

Tax preparers are encouraging people to call or stop in to your local office to ask questions as this tax season begins.

Refunds won't be issued until the government is reopened, which could mean trouble for those hoping to have some extra cash in February or March.

The tax assistance lines won't be staffed until the shutdown ends.

An IRS spokesman, Matt Leas, declined to comment on the letter. But if it drags on, taxpayers across the country likely will feel the impact - if income tax refunds are delayed. "We offer a refund advance loan, 500 to six thousand dollars, you can get it within 24 to 48 hours", said Land.

That's according to a December shutdown plan that lays out the first five business days of the agency's response during a shutdown occurring outside of tax season. And plans for what can and can't be done during the partial shutdown can change, USA Today reports.

White House says it's up to Pelosi to end the government shutdown
For a few hours, the promise of a new era was the order of the day. "Makes sense to me!", he tweeted on December 31. On Wednesday, Trump also rejected his own administration's offer to accept $2.5 billion for the wall.

Soon it will be time to file your tax returns. But with the IRS unstaffed, she's at a standstill.

The IRS says you will still be able to file your 2018 tax returns, but the agency won't be able to issue refunds until after the shutdown ends.

In other words, you can still pay the government, but the government won't be returning anything it took in excess.

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.

However, in the case that it does remain closed, Olsen said people should continue to file taxes as if everything is normal.

Finally, even though the IRS may not conduct audits during a shutdown, remember that they can (and will) conduct audits once the shutdown has ended! "There's a very real possibility that the tax filing season would have to be delayed".

"We're now in unprecedented territory here", he said.

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