Friday, 18 January, 2019

White House says tax refunds will go out on time

White House says tax refunds ‘will go out’ but tax professionals say be prepared White House says tax refunds ‘will go out’ but tax professionals say be prepared
Nellie Chapman | 10 January, 2019, 04:38

The Internal Revenue Service plans to pay tax refunds in the coming weeks, administration officials say, after the White House decided Monday it was legally permissible to process tax returns during a government shutdown.

According to the Wall Street Journal, Russell Vought, the acting OMB director, told reporters, the administration is trying to make the government shutdown as "painless as possible consistent with the law".

CBS News says White House officials announced tax refunds will go out and will not be affected by the shutdown.

"There's also a lot of opportunities with different corporations or different tax places in the area that do offer what's called the advance on returns".

Concern has been growing that hundreds of billions of dollars in refunds would be delayed until the shutdown ends because funding for them wouldn't be available.

It is nearing the time of year when many of us start receiving our W-2 forms and begin to search through the files or shoeboxes for the receipts and other documents in that annual chore known as filing our taxes.

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.

The shift from the White House comes as officials prepare for an extended shutdown.

Some experts question whether the Trump administration has the legal authority to reverse those earlier policies to allow the government to issue refunds during a shutdown.

"[The] longer the shutdown lasts, the more government services will grind to a halt".

That's what will happen if the shutdown continues past the opening date for tax returns. If the tax filing season opens later than last year-on January 29, 2019-please explain the delay and whether the lapse in government funding played a role.

Nonpartisan tax experts have projected that the law will bring lower taxes for the great majority of Americans, though not all.

According to IRS data through April 2018, the IRS processed over 130 million individual tax returns and issued close to 100 million refunds that totaled $275 billion.