White House will order IRS to pay income tax refunds despite shutdown

10 January, 2019, 04:40 | Author: Brooke Harris
  • White House says tax refunds ‘will go out’ but tax professionals say be prepared

The Trump administration has assured Americans that federal income tax refunds will be sent out despite the government shutdown that's been going or two weeks.

However, the Trump administration lawyers ruled that the refunds could be paid after all. President Donald Trump has said he's unwilling to reopen the government unless it includes funding for a border wall between the United States and Mexico.

The IRS will make it as "painless as possible consistent with the law", he added.

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

Your tax refund could be significantly delayed if the government shutdown continues.

Neither, apparently, are house Democrats. "How will they bring those employees back, and will they be compensated while they're working?"

Herron explained, "The budget tells the IRS how to configure training for the employees, it tells them how to configure the tax returns, the actual forms, it also tells them how to configure their computers to process the tax returns".

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Since this shutdown began on December 22, the IRS has sent home 90 percent of its staff without pay, something that was scheduled to continue indefinitely until Congress appropriated new funds.

To minimize errors and provide faster refunds, the IRS recommends people to file their tax returns electronically.

The online alert reads, "Under federal law, all tax payment and filing remain in effect during this period".

The new law, which took effect January 1, 2018, gave generous tax cuts to corporations and the wealthiest Americans and more modest reductions to middle- and low-income households.

The IRS' challenges come as the agency is hobbled by what is widely viewed as a skimpy budget.

The IRS paid out $12.6 billion by February 2, 2018, to more than 6 million households; $101.2 billion to nearly 32 million households by February 16; and had doled out $212 billion in refunds by the end of March 2018 to 73 million households, according to TheWSJ.



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