A recent GOBankingRates survey shows Americans are most likely to use their tax refunds to pay off debt.
The partial government shutdown may significantly delay tax refunds from the IRS.
As a partial government shutdown approaches its two-week point, concerns are growing that a heavily impacted Internal Revenue Service will delay issuing taxpayers' refunds.
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President Donald Trump is withholding his support for a bill that would fully fund the government until he secures $5.6 billion for a wall on the U.S. As a shutdown lasts longer, the agency will have to rework its plan, and head into more uncertain territory that could demand, for example, that agency employees show up to work without pay. "Their withholding has also decreased and therefore their refund might be exactly the same as it was in the previous year when they were expecting a bigger refund because of the tax reduction", Fortine explained.
During a shutdown, only 12.5 percent of the IRS workforce is authorized to work.
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"We can go ahead and file and the IRS will process them to the point of refund payment still but the refund payments won't be paid out until they get back to work", he said. So, yes, one would think by March, tax season, refunds and tax money would be starting to flow into our economy.
The Wall Street Journal reported that by February 2, 2018, the IRS had paid $12.6 billion in refunds to more than 6 million households and by February 16, that figure increased to $101.2 billion for almost 32 million households. According to the agency's contingency plan for lapsed appropriations, taxpayer refunds are one of the things that will be affected.
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