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techkenyot.com March 20, 2019


IRS will pay refunds during government shutdown, official says

10 January 2019, 04:41 | Hattie Nash

Bloomberg News

Bloomberg News

A Trump administration official says income tax refunds for 2018 will go out on time during the partial government shutdown because rules will be changed to make funding available to pay them.

With the shutdown in its third week there had been mounting concerns over an IRS delay in sending refunds.

White House Office of Management and Budget acting director Russell Vought (shown above left) said the shutdown won't impact tax returns, despite reports to the contrary.

Large parts of the federal government have been shutdown since December 22 amid a fight between the White House and congressional Democrats over whether to spend more than $5 billion on parts of a wall along the Mexico border. But committee lawyers believe the law prohibits such a move, because refunds are paid out of the government's general fund. Committee staff said Monday they were struggling to get clarity from administration officials, many of whom are out on furlough.

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The federal government typically starts accepting tax returns at the end of January.

Until today, the Trump administration said refunds couldn't be paid while the IRS was shut because that wasn't necessary to protect life or government property. That's within the normal timeframe. The IRS says it is still working on contingencies if the shutdown continues.

April 15 is the deadline for most taxpayers to submit 2018 tax returns, taxpayers who live in ME or MA have until April 17 to file due to state holidays.

Remember that big tax cut approved by Congress and the president?

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And while that work is likely being done by the IRS personnel who remain on the job, Miller said there is a lot of other work that isn't, including training in the new tax law for those who answer the IRS help line. Republicans controlling the congressional purse strings for years accused the IRS of having a liberal bias and unfairly targeting conservative tax-exempt groups.

"The decision will come as a relief to many taxpayers who file their taxes as soon as the filing season begins to claim their refund checks", Boomberg reports.

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