Refunds Will Come, But it Will Not Be the Same

         There has been a mix of confusion and anxiety as the partial Federal Government shutdown has continued this month. What seemed to bring clarity were the announcements that Tax Returns would be accepted starting January 28 and that Tax Refunds will be issued. However, the actual details paint a different picture.

          After the IRS contingency plan ran out on December 31, it was only replaced on January 15. This was an outline that described how the returns and refunds would be handled. 46,000 employees would be recalled without pay to will handle paper and electronic Tax Returns. While that sounds good, these employees will start their time by focusing on notices sent in before the government shutdown started. At the same time, there will be no way to contact the IRS to answer questions related to Tax Season. It will be as if, someone is home, but they are not answering the phone or opening the door.

          It is believed that the IRS gets more than 95 million tax related calls each year. Their advocate service as of now, will not be available for this Tax Season. Since the application of the Tax Cuts and Jobs Act (TCJA) has doubled the number of pages used in a simple tax return (redesigned 1040 with many new schedules attached) this is a real concern, as Taxpayers try to apply this new law.  This situation is still fluid and can change daily. At this point we need to watch and listen carefully to see what new developments will change things. One thing is for sure, don’t spend your Tax Refund before you get it.

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