IRS Will Pay Tax Refunds in Shutdown After All

10 January, 2019, 04:41 | Author: Regina Silva
  • White House says tax refunds ‘will go out’ but tax professionals say be prepared

The partial government shutdown won't keep the Internal Revenue Service from issuing refunds to taxpayers, "even if the US government shutdown extends into the filing season", Bloomberg reports.

Prior to today's announcement, the IRS had said that tax refunds were among the agency's "non-excepted activities" that are impacted by a shutdown and therefore not carried out. "The IRS usually pays around $125 [billion] in tax refunds in February and a further $75 billion in March", Ashworth wrote.

The White House Office of Management and Budget announced the decision Monday.

As it dragged through a third week, the partial government shutdown could not have come at a worse time for the Internal Revenue Service.

Since tax season ends April 17th people still need to file their taxes and workers doubt that the government shutdown will last that long.

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OMB determined that paying tax refunds was an "indefinite appropriation", and not something that needed annual congressional approval. So everyone is still on the hook to pay their federal income taxes, but those who overpaid don't know when they might expect their refunds. He added that the Trump administration is working to make the shutdown "as painless as possible, consistent with the law".

Paying these tax refunds could help the White House avoid an enormous political and economic mess next month.

Issuing refunds on time would make it easier for President Donald Trump to continue the shutdown without affecting taxpayers waiting for money.

But fear not, the White House says; tax refund checks will be sent out, even though the IRS, part of the Treasury Department, is for the most part closed.

The IRS said it will recall a "significant portion" of its roughly 52,000 furloughed employees to work on tax returns. If the tax filing season opens later than last year-on January 29, 2019-please explain the delay and whether the lapse in government funding played a role.

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