If the partial federal government shutdown continues much longer, early tax filers might not get refunds quickly this year.
The IRS is among the federal agencies affected by the government shutdown, now in its second week.
The IRS is currently working under non-filing season shutdown plans and will be updating it ahead of the upcoming tax season as soon as Friday, according to CNN.
During a shutdown, the IRS typically doesn't perform audits, pay refunds or offer assistance to taxpayers if they have questions, especially outside of the filing season. While some of the lights may still be on in the building, the agency is currently operating with only 12.5% of its workforce, or fewer than 10,000 federal employees.
This means if you have questions about new tax forms, you’re out of luck.
That's concerning to many, especially considering the massive changes to the tax system for 2019.
President Donald Trump signed the most sweeping tax overhaul in three decades back in December 2017, but this year is when Americans will really start to feel the effects of the changes.
Those changes include individual tax rates, as well as a sizeable increase in the standard deduction that will cause some people to no longer itemize their deductions. Another key change for some families is that state and local income tax deductions for individuals will be limited to $10,000 each tax year.
Another thing to keep in mind is that Americans started receiving more money in their paychecks last February because of changes in the payroll withholding tables under the new federal tax law.
"The losers as far as the tax end of it will be maybe the people that have a lot of deductions to take against their income on a W2 because they won't have those deductions to take any more," said Darryl Duhon, a tax preparer based in Grand Blanc.
The change in withholding tables might accurately reflect your tax bill, but some people might not have had enough money withheld, so they could owe more in taxes than they'd typically expect when they file their 2018 returns. They could also receive a much smaller tax refund.
Tax filing season usually begins in mid-January, and if the shutdown is resolved by then, it may have little lasting impact on taxpayers.
However, depending on how long the shutdown lasts, that could change dramatically.
The IRS has yet to announce when individuals and businesses can begin submitting their income tax returns.
