THE TREASURY DEPARTMENT ANNOUNCED THIS MORNING THAT THE IRS WILL ISSUE REFUNDS, DESPITE THE GOVERNMENT SHUTDOWN. However, any refunds for returns claiming the Earned Income Tax Credit (EITC) and/or the Additional Child Tax Credit (ACTC) will not be issued before mid-February.
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How will the government shutdown impact the 2019 filing season? Will it delay the filing of tax returns, or, more importantly, how and when refunds are issued?
Because the IRS was only funded through December 22, 2018, the shutdown will create multiple changes at the agency. Congressional negotiators are currently working on a continuing spending resolution that would fund the federal government through Feb. 8, 2019.
The IRS has announced that preparation for the 2019 filing season will not be affected by the shutdown. This means that yes, you still need to file your 2018 tax return by April 15th.
Almost 90% of the IRS personnel is now on leave of absence without pay. Certain employees identified as “excepted/exempt” employees have not been furloughed.
Certain IRS activities will continue during a shutdown, including continuing to complete and test upcoming filing year programs; processing electronic returns, up to the point of refund; processing paper tax returns through “batching”; processing remittances; and maintaining criminal law enforcement operations.
However, most IRS activities will stop during a shutdown. These “non-excepted” activities under the plan include:
When funds are appropriated to the IRS, furloughed employees will return to work (they are expected to return within four hours after the reactivation is announced if it occurs on a scheduled work day).
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How will the government shutdown impact the 2019 filing season? Will it delay the filing of tax returns, or, more importantly, how and when refunds are issued?
Because the IRS was only funded through December 22, 2018, the shutdown will create multiple changes at the agency. Congressional negotiators are currently working on a continuing spending resolution that would fund the federal government through Feb. 8, 2019.
The IRS has announced that preparation for the 2019 filing season will not be affected by the shutdown. This means that yes, you still need to file your 2018 tax return by April 15th.
Almost 90% of the IRS personnel is now on leave of absence without pay. Certain employees identified as “excepted/exempt” employees have not been furloughed.
Certain IRS activities will continue during a shutdown, including continuing to complete and test upcoming filing year programs; processing electronic returns, up to the point of refund; processing paper tax returns through “batching”; processing remittances; and maintaining criminal law enforcement operations.
However, most IRS activities will stop during a shutdown. These “non-excepted” activities under the plan include:
- Issuing refunds;
- Processing Form 1040X amended returns;
- All audit functions and examinations of returns;
- Processing paper tax returns that do include remittances; and
- Taxpayer services, such as answering taxpayer questions.
When funds are appropriated to the IRS, furloughed employees will return to work (they are expected to return within four hours after the reactivation is announced if it occurs on a scheduled work day).
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