In a Shutdown, IRS Will Take Your Money, but Give No Refunds


Customers are asking how and when they should file their taxes, as the partial government shutdown continues.

But fear not! While the Internal Revenue Service now lacks the funds to process refunds, it is fully prepared to process tax returns that include payments to the government.

And during shutdowns, only a fraction of IRS employees work.

If the shutdown stretches further, Shattuck says it could affect how quickly early filers get their refunds.

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A prolonged government shutdown would likely delay billions of dollars in income-tax refunds, according to the Wall Street Journal.

During the shutdown, the Internal Revenue Service has lost funding and is operating with about 12% of its employees. The IRS hasn't announced a start date yet for the 2019 filing season, the first under the tax law that Congress passed in 2017. He said some taxpayers were also going to see a delay so the government can make sure their documents aren't fraudulent. With that in mind, should you wait to file your taxes? The new form is likely to create confusion for some taxpayers - but they can't call the IRS for help.

"This filing season was always going to be challenging", said Pomerleau.

When the government does re-open, when will people get their money?

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Taxpayers who've been counting on a tax refund to pay off credit-card bills from Christmas spending may feel themselves squeezed, in other words.

Looking back at a year ago, by February 2, 2018, the IRS had paid $12.6 billion in refunds to more than six million households.

The office manager says there are some questions that can't be answered, but what she is advising customers to start getting tax paperwork together now.

"We're now in unprecedented territory here", he said.

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