Taxes still due, but refunds delayed if government shutdown continues

Jonathan Ernst  Reuters FILEA view of the U.S. Internal Revenue Service headquarters in Washington D.C

Jonathan Ernst Reuters FILEA view of the U.S. Internal Revenue Service headquarters in Washington D.C

He also noted that another problem for taxpayers is that as the shutdown continues, mortgage lenders will be unable to obtain tax transcripts to verify income for loan.

Workers at Liberty Tax Service in Stroud Township have been getting a lot of phone calls from customers asking what they should do this tax season as the shutdown continues.

A shutdown that gets resolved within a few weeks would have little ultimate effect on taxpayers, but lawmakers have made little or no movement toward a deal.

While refunds might be delayed, the April 15 deadline to file won't change. On top of that, IRS staff is down to just 10% of normal levels.

"The IRS hasn't announced a start date yet for the 2019 filing season", the report added.

That's making tax professionals fret as they anticipate a shorter window in which to file.

In addition, there is a new 1040 form this year because of the new tax law that was passed just more than a year ago. But many people start filing in mid-January, hoping to get an early tax refund.

"Don't look for this filing season to be open even at the end of January".

Soon it will be time to file your tax returns.

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. Indeed, many retailers count on people to spend more money in February.

The Wall Street Journal reported that by February 2, 2018, the IRS had paid $12.6 billion in refunds to more than 6 million households and by February 16, that figure increased to $101.2 billion for almost 32 million households.

Despite the shutdown, tax experts say you still need to do your taxes.

Agriculture Department spokesman Tim Murtaugh said, "We are now looking at options for SNAP..."

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