Thursday, 24 January, 2019

IRS Will Pay Tax Refunds in Shutdown After All

Tax refunds will be paid despite shutdown White House says	 	 	 			Getty Images Tax refunds will be paid despite shutdown White House says Getty Images
Priscilla Morrison | 10 January, 2019, 04:38

Herron says despite the shutdown, automated payments will continue and taxpayers can also mail payments.

House Speaker Nancy Pelosi intends to begin passing individual bills to reopen agencies in the coming days, starting with the Treasury Department to ensure people receive their tax refunds.

Good news for people anxious the government shutdown would delay their tax refunds.

Previous presidential administrations had determined that most of the staff members were non-essential and therefore could not work during shutdowns.

With the White House announcement on refunds, "They're reversing a long-standing legal position", said Howard Gleckman, senior fellow and tax expert at the Urban Institute.

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The partial government shutdown couldn't have come at a worse time for the Internal Revenue Service. "Reports indicate many Americans are experiencing delays in financing or refinancing mortgages and other loans because of lenders inability to obtain tax transcripts to verify incomes for loans", continued the Senators. The move seeks to circumvent a potential political problem for the Trump administration by allowing taxpayers to claim refunds despite the government shutdown, which is already dragging into Day 17. That's why, in the past, tax refunds have stalled during shutdowns, because there were no workers to process them.

"IRS employees have been hard at work over the past year to implement the biggest tax law changes the nation has seen in more than 30 years", Rettig said. These refunds can often be around $2,000 or $3,000. This money is vitally important for American families and their ability to pay for their basic needs.

As the partial government shutdown heads towards the 17th day, the White House announced that the IRS will process tax returns despite approximately 90 percent of the agency's workforce now on furlough. Those who need the refunds the most are also usually among the first to file during the January to April tax season.

A 1040 tax form appears on display, Tuesday, Jan. 10, 2017, in NY. No date to begin accepting 2018 returns has been announced. Since that plan has expired, the IRS has said that it expects to update that contingency plan soon.

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