Shutdown may delay IRS refunds for Americans who need them the most

The ongoing partial government shutdown may delay billions in income-tax refunds to lower-income workers who tend to file their taxes early. The Internal Revenue Service is operating with about 12 percent of work staff as the shutdown stretches into its third week, The Wall Street Journal reported. During a shutdown, the IRS can process tax returns but cannot pay refunds. In the event of a prolonged shutdown, which is likely given the current state of stalemate between President Donald Trump and Democrats, the IRS may face an unprecedented closure during the tax season. The IRS usually begins to accept tax returns toward the end of January and begins to send out refunds by early February. Last year, the IRS paid out $12.6 billion in refunds by Feb. 2 and $101.2 billion in refunds by the end of the month. If the shutdown extends into February, those refunds would be delayed indefinitely. The delays would hit lower-income workers the hardest, since they are more likely to benefit from the earned-income tax credit and other provisions that reduce or eliminate their tax liability. People who tend to file early are taxpayers who rely on refunds to pay off their debts and outstanding bills, the Journal noted, while people who owe additional taxes are more likely to wait until closer to the deadline to file. “Wealthier filers generally have more sophisticated returns and file later so they should not be affected as much,” Floyd Williams, the former IRS director of legislative affairs, told The Journal. (1)

Source

So, if the shutdown continues then many people will not be able to get their refunds early this year. I know some folks who count on those refunds to pay down bills, get caught up on their mortgages, get their cars fixed before inspection time.

Is there a way that congress and the president can fund the IRS right now, and leave the negotiations for the rest of the government and the wall for later?

I know that ATS is not a demographic cross section of the US, but how many of you are counting on an early tax refund to just get on with life (for US citizens).

How many of you would support a single bill to fund the IRS?

Thanks.

originally posted by: FilthyUSMonkey
I know that ATS is not a demographic cross section of the US, but how many of you are counting on an early tax refund to just get on with life (for US citizens).

Not me. If you get a regular yearly refund then you have been giving the government an interest free loan which could have been in your pocket instead.

a reply to: FilthyUSMonkey

How can a situation like this happen in The U.S. ?

This is Third World stuff.

of course they will not fund the IRS, so that people can get their tax returns. the democrats want the shutdown to hurt as much as possible. especially to hurt the poorest among us. it plays into their supporters hands, so that they can scram and whine about how bad Trump is hurting them. i'm actually surprised that the democrats haven't found a way to inactivate "snap cards", so that they can not be used during the shutdown. that would hurt even more people, in the hopes that they would support those who are doing it to them.

The flip side is this, if you owe money and the shutdown continues there's no one for you to pay so go to the strip club, order up a bottle of Kristal and make it rain in the VIP room*.





*I am not a certified finacial planner and all recommendations should be ignored, unless you're taking me with you

Another example of the US governments shoddy practices.
The "refunds" are overpayment of taxes, money the gov shouldnt even have to begin with.
Perhaps the gov should learn to manage money better and not spend the exess payments.
Then it would be readily available for reimbursement to its rightfull owners.

Shut the federal government down entirely.
Then we can just keep our tax dollars where they belong. In our wallets.

Lol, I can spot em a mile away. a reply to: AugustusMasonicus

I am willing to wait for mine until we have a secure border,

The dems want to pull the "you have to pass the bill to see what's in it " crap again.

a reply to: generik

Too bad the democrats have nothing to do with the shutdown.
Talk to the toddler throwing a tantrum because he is not getting his way ...and that is because with what Mueller has coming down the pike he desperately needs a win to show his base. Without the wall he will lose even more if his base and he isnt gaining any new supporters.

originally posted by: Sillyolme
a reply to: generik

Too bad the democrats have nothing to do with the shutdown.
Talk to the toddler throwing a tantrum because he is not getting his way ...and that is because with what Mueller has coming down the pike he desperately needs a win to show his base. Without the wall he will lose even more if his base and he isnt gaining any new supporters.

Didn't Trump very loudly declare that he was owning the shutdown? Then again...Mexico was going to pay for the wall, too.

a reply to: AugustusMasonicus

*I am not a certified finacial planner and all recommendations should be ignored, unless you're taking me with you

but you do seem to have an insight to the inner workings of a strip club.

order up a bottle of Kristal and make it rain in the VIP room*.

maybe you're just a fan of burlesque.

a reply to: generik

of course they will not fund the IRS, so that people can get their tax returns. the democrats want the shutdown to hurt as much as possible. especially to hurt the poorest among us

You are wrong. In fact the dems in the house have already passed a bill to fund the irs through this year.
They voted on it the very first day.
www.congress.gov...

For necessary expenses of the Internal Revenue Service to provide taxpayer services, including pre-filing assistance and education, filing and account services, taxpayer advocacy services, and other services as authorized by 5 U.S.C. 3109, .

Will the republicans in the senate pass it? Will trump sign it ? Or do they just want to hurt people?

a reply to: scraedtosleep

They have proposed five bills to end the shutdown in the past four days.

originally posted by: soundguy
Lol, I can spot em a mile away.

What? Smart people who can manage their money? Thanks.

a reply to: FilthyUSMonkey

I saw this on the morning news today. If IRS is shut down so they can't give us refunds, then how come they are not shut down so they stop collecting money out of our paychecks? Seems like it should work both ways.

a reply to: Sillyolme

but you do seem to have an insight to the inner workings of a strip club.

In some towns, it's the only place you can find a decent breakfast buffet at 3 in the morning.

Maybe that's why you see so many people who look like they work for the fed in there, shutdown or no shutdown.

originally posted by: toms54
a reply to: FilthyUSMonkey

I saw this on the morning news today. If IRS is shut down so they can't give us refunds, then how come they are not shut down so they stop collecting money out of our paychecks? Seems like it should work both ways.

I know that a great deal of the "collection" function is automated per payroll taxes. The payroll tax is a simple equation, based upon the number of dependents a worker lists on their W-4 (and other factors). So, based upon your paycheck, the formula is applied. You can also use the calculator at www.irs.gov/W4App to determine your tax withholding more accurately.

Most payroll taxes follow an automated workflow to SSA and the IRS, where your payments are recorded.

For other types of taxes (capital gains, outside work with 1099's) things may not be as automated.

However tax refunds are different for each filing individual, and the processing is much less automated.

Thanks.

originally posted by: AugustusMasonicus

originally posted by: FilthyUSMonkey
I know that ATS is not a demographic cross section of the US, but how many of you are counting on an early tax refund to just get on with life (for US citizens).

Not me. If you get a regular yearly refund then you have been giving the government an interest free loan which could have been in your pocket instead.

I never understood that. People actually planned on this and it never made any sense to me.

I always, "owe". And pay at the last minute.

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originally posted by: alldaylong
a reply to: FilthyUSMonkey

How can a situation like this happen in The U.S. ?

This is Third World stuff.

And it becomes such more and more regularly.

Are you saying most people would rather have a refund than a wall? I'm sure you're not alone. lol