No Delay; Tax Filing Season Starts Jan. 28
Despite the shutdown of the federal government, which has now dragged into its third week, the IRS expects to kick off the tax filing season on Monday, January 28. It will begin accepting both electronic and payer returns on that day.
Jan. 10, 2019
Despite the shutdown of the federal government, which has now dragged into its third week, the IRS expects to kick off the tax filing season on Monday, January 28. It will begin accepting both electronic and payer returns on that day.
The announcement was made on January 7 in accordance with directives from the White House (IR-2019-01, 1/7/19).
Traditionally, the IRS hasn’t issued tax refunds when the government is shut down, as evidenced by refund delays during an extended period in 2013. This has caused concern among many early filers who want to get their hands on the tax money as soon as possible. But the IRS has assured taxpayers that it will be conducting business as usual no matter how long the stalemate lasts.
“We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown,” said IRS commissioner Chuck Rettig in a press release. “I appreciate the hard work of the employees and their commitment to the taxpayers during this period.”
Currently, the IRS is working with only about 12% of the staff it usually employs.
What’s more, resources were already stretched then due to a limited budget. The IRS has yet to announce ant additional contingency plans for the shutdown or explained how it will meet its objectives. It has, however, stated that it will be recalling a big part of its workforce.
To further complicate matters, the 2018 returns that are to be filed by individual taxpayers this year include numerous changes implemented by the Tax Cuts and Jobs Act (TCJA). Among other significant provisions, the TCJA lowers tax rates, eliminates personal exemptions and modifies certain deductions. This is expected to place an even greater strain on the system.
“IRS employees have been hard at work over the past year to implement the biggest tax law changes the nation has seen in more than 30 years,” noted Rettig.
The filing deadline for 2018 tax returns remains Monday, April 15, 2019 for most taxpayers. Due to local holidays, taxpayers who live in Maine or Massachusetts have until April 17, 2019 to file their returns.
Software companies and tax professionals can start accepting and preparing tax returns before January 28 and then submit the returns when the IRS systems open later this month. The IRS is urging taxpayers to file their tax returns electronically to minimize errors and provide faster refunds.