The IRS has announced that it will begin processing tax returns on January 28, 2019, despite the partial federal government shutdown. Taxpayer refunds will also be processed as scheduled.
“We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown. I appreciate the hard work of the employees and their commitment to the taxpayers during this period,” said IRS Commissioner Chuck Rettig. “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,” he added.
The IRS will be recalling a significant portion of its workforce, currently furloughed as part of the government shutdown. The IRS also stated that additional details for the filing season will be included in an updated Fiscal Year (FY) 2019 Lapsed Appropriations Contingency Plan.
The filing deadline to submit 2018 tax returns is Monday, April 15, 2019, for most taxpayers. However, taxpayers who usually file early need not wait to file their returns.
Tax Refunds
Congress had directed the payment of all tax refunds through a permanent, indefinite appropriation (31 U.S.C. 1324). The IRS stated that it has consistently been of the view that it has authority to pay refunds despite a lapse in annual appropriations. Although in 2011 the Office of Management and Budget (OMB) directed the IRS not to pay refunds during a lapse, OMB reviewed the relevant law at Treasury’s request and concluded that IRS may pay tax refunds during a lapse.
Before the shutdown occurred, the IRS had released its FY2019 Lapsed Appropriations Contingency Plan, which stated refunds are generally not issued during a government shutdown.
Government Shutdown
The partial government shutdown has become the longest is U.S. history. At the time this newsletter went to press, Democratic and Republican lawmakers continued to disagree about the best way forward in reconciling funding for both the federal government and President Donald Trump’s border security request.
