On December 22nd, we entered into a partial government shutdown. This shutdown has had a far-reaching effect, much of which we have not fully felt just yet. Due to the shutdown, approximately 800,000 federal employees are working without pay or are on furlough. While many have been hopeful that the shutdown would be over by now, it is continuing straight into tax season.
How Will the Government Shutdown Affect Tax Season?
As you are gathering your tax documents and preparing to file your taxes, you may be wondering if your tax refund will be delayed as a result. The IRS has a five-day plan for a shutdown, but we are well past that five days now. At this point, only about 12 percent of IRS workers are still working.
With so few IRS workers on the job, processing taxes will inevitably be affected. In essence, these workers will continue all essential work such as maintaining the computer systems, protecting government property, and processing some tax paperwork. This leaves a lot of functions not being done during this time.
For instance, you may find it difficult to call the IRS if you have a tax question right now, as very few people are on staff and available to take your call. Tax audits have been suspended. Although the government is currently stating that tax returns will be processed, the tax refunds may be delayed until the shutdown ends, though the IRS currently states they will not be. With so little help available from the IRS, it is important to hire a professional for tax prep, as it is still your responsibility to ensure your taxes are properly filed.
As of January 15, 2019, the government ordered 36,000 IRS workers to return to the job even though they are not being paid. Even with the uncertainty in regards to when the IRS will be fully up and running again, you will not want to delay in filing your taxes. Preparing your taxes and filing as normal will assure they are processed as soon as possible, getting you your refund as quickly as possible.
For Tax Prep, Turn to the Experts Here at Vault
While the government shutdown may resolve itself before refunds become an issue, you likely have some concerns. Here at Vault Wealth Management, we are ready and able to answer your questions and help you with tax prep in Palm Beach Gardens. Pick up the phone and call us today at 561-223-3252!