What happens to your tax refund during a government shutdown?
Government Shutdown in March: How It May Affect Your Tax Refund Timeline (PHOTO: CNET)
Impact on Taxpayers and Tax Refunds during a Government Shutdown
As March 1 and March 8 approach Congress is scrambling to pass a $1.66 trillion federal spending deal to avoid a government shutdown. If they do not make a decision many government agencies including the IRS might close down until a bill is passed. This is a big deal because it could affect your tax refund if you file your taxes during that time.
If the IRS shuts down it may not be able to process tax returns or issue refunds. This means if you are expecting a refund you might have to wait longer to get it. Additionally you might not be able to get help from the IRS if you have questions or need assistance with your taxes.
READ ALSO: How Much Does The Typical Middle-Class Retiree’s Social Security Check Amount?
It is important to stay updated on the situation and be prepared for potential delays. If you are expecting a refund consider filing your taxes early to avoid any potential issues. And if you have questions or need help consider reaching out to a tax professional for assistance.
Why is the Government Shutdown a Topic of Discussion?
The governments fiscal year runs from October to September and Congress usually agrees on a budget to fund it for the year. Last year Congress could not agree on the budget in time so they passed short term funding bills to keep things going. These bills funded some departments until March 1 and others until March 8. If Congress does not pass a budget by then the parts of the government without funding have to shut down temporarily.
What is the potential delay for tax refunds during a shutdown?
It is tough to predict the exact impact of a government shutdown on tax refunds. The IRS has not faced a shutdown during tax season before so there is some uncertainty. The agency is already working hard to catch up from delays caused by the 2020 pandemic shutdown. If there is another shutdown it could make things even more challenging.
READ ALSO: Understanding The Child Tax Credit: Eligibility And Benefits Explained
