What about IRS during the government shutdown?

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Gaybutton
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What about IRS during the government shutdown?

Post by Gaybutton »

Trump has said the shutdown might last for weeks, months, or even years. He actually said that. Meanwhile I can't imagine what he thinks government employees are supposed to do for money. Republicans, did you really put Trump in office for this?

During the shutdown IRS is operating with a skeleton staff of about 10,000 people nationwide. For Americans, that does NOT mean you don't have to file tax returns during the shutdown. Yes you do. However, there will be no tax refunds during the shutdown.
_______________________________________________

Your Taxes Are Still Due During the Government Shutdown, But You Won't Get a Refund

by Chris Morris, Fortune

January 3, 2019

The Internal Revenue Service, like many other government agencies, is operating on a skeleton staff as the government shutdown continues with no end in sight. But don’t think that means you’re going to get a break on paying taxes.

The IRS will continue to process tax returns, regardless of the ongoing budget fight in Washington. However, when it comes to issuing refunds, that’s not going to happen until the government completely reopens.

Now it’s not much of a problem. Few people file taxes during the first week of the year. But as we get deeper into January and tax filing season begins, it could create a backlog with an economic impact.

Last year, the IRS issued $12.6 billion in refunds by Feb. 2. Two weeks later, the total hit $101.2 billion. And by March 30, 73 million households had received $212 billion in refunds.

The bulk of people getting refunds last year—some 65%—tucked them into savings, according to Morgan Stanley.

Another 35% paid down debt and 12% splurged on vacation, while 8% made a major purchase, such as a car or television.

There could be severe consequences for businesses if the shutdown affects consumer spending of refunds. Of particular note: The government closure is occurring in the first part of the year. Early filers tend to receive refunds, whereas people who owe the IRS typically wait until the last minute.

Even more frustrating? The average 2019 refund is expected to be 26% higher than 2018’s on average.

Additionally, filings could slow as accountants continue to fully understand all the changes in the 2019 tax law.

There are some bright spots. The IRS is permitted to bring in more workers as tax season approaches, which could mean refunds go out faster when the agency does start sending them. Also, the IRS typically doesn’t conduct audits during a shutdown. Regardless, those have been on the decline for a while now, due to budget cuts.

http://fortune.com/2019/01/03/shutdown-irs-tax-refund/
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Re: What about IRS during the government shutdown?

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I've already E-filed my income tax return and I will be getting a refund. Of course just when will depend on when the shutdown ends.

IRS specifies that direct deposit refunds must go to an American bank. Until now I've always had it sent to Bangkok Bank via the New York branch. However, I have no idea whether IRS uses the IAT format, so I will have this refund and future refunds sent via TransferWise, especially since there is no way to know if refunds will be available before the April 1 deadline when Bangkok Bank stops accepting direct deposits unless they come in via the IAT format.
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Re: What about IRS during the government shutdown?

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White House says tax 'refunds will go out' amid shutdown

By Donna Borak, Jim Acosta and Jeremy Diamond, CNN

January 8, 2019

Washington (CNN) - Americans can still expect to get their tax refunds even though the Internal Revenue Service has been swept up in the federal government shutdown.

"Tax refunds will go out," acting director of the Office of Management and Budget Russell Vought told reporters on Monday. He added that the Trump administration is working to make the shutdown "as painless as possible, consistent with the law."

The decision marks a reversal of a long-standing policy that refunds due to millions of American taxpayers go unpaid during shutdowns.

A senior administration official said that OMB is relying on a 2011 IRS memo that argued tax refunds can be paid out during a shutdown.

At the time, the OMB's general counsel disagreed with the IRS chief counsel's position and said tax refunds could not be paid out during a shutdown.

Faced with the latest shutdown, the Treasury Department last week asked the current OMB general counsel to revisit the 2011 memo and a supplemental memo was submitted to OMB this past Friday.

In a statement, the IRS said the agency has always held the view that it has the authority to pay out tax refunds despite a lapse of appropriations during a shutdown.

"We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown," IRS Commissioner Chuck Rettig said.

The agency said it will be recalling a "significant portion" of its federal employees, who are on furlough, back to work as tax season approaches. The IRS will also be updating its agency shutdown plan in the coming days.

During a shutdown, the IRS typically doesn't perform audits, pay refunds or offer assistance to taxpayers if they have questions, especially outside of the filing seasons.

The country's tax collector is among the federal agencies affected by the partial government shutdown, which is now in its third week.

And while some of the lights may still be on in the building, the agency is currently operating with only 12.5% of its workforce, or fewer than 10,000 federal employees.

Any gap in individuals not receiving money they're owed was expected to intensify pressure on Trump and lawmakers to strike a deal quickly.

Many consider it a major financial windfall that they use to help cover costly expenses or boost their yearly savings. Those who need the refunds the most are also usually among the first to file during the January to April tax season.

The shift from the White House comes as officials prepare for an extended shutdown. President Donald Trump has said he's unwilling to reopen the government unless it includes funding for a border wall between the United States and Mexico.

A lengthy stalemate would complicate this year's tax season, the first under the new law passed by Congress in 2017.

Tax filing season usually begins in mid-January, and if the shutdown is resolved by then it may have little lasting impact on taxpayers. The IRS has yet to announce when individuals and businesses can begin submitting their income tax returns.

https://edition.cnn.com/2019/01/07/poli ... index.html
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Re: What about IRS during the government shutdown?

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Kinda had a laugh this morning after I visited the Treasury or FinCen website to see what the 12/31 exchange rates were so to be able to file the online FBAR report. This is what the website says in rather large letters:

Current Rates
Note: This report will not be available until after the partial government shutdown has ended.

While I can sympathize somewhat with the notion that nobody ought to work for nothing, the government worker who posted that notice could have spent the same amount of time to actually post the 12/31 exchange rate. Sometimes one wonders if "government worker" is an oxymoron....
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Re: What about IRS during the government shutdown?

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I can't even imagine all these people who Trump expects to work without pay to ever vote for him again or any congressman or senator supporting the shutdown.

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