Will Partial Government Shutdown Affect Tax Refunds? What To Know
Summary
A partial government shutdown has begun, causing worries about possible delays in tax refunds. The IRS stated it will continue working normally during the shutdown, even as it recovers from past staff cuts. Taxpayers should still file returns as usual to get refunds.Key Facts
- A partial government shutdown started on January 31 after funding expired for several agencies, including the IRS.
- The IRS announced it will operate normally during this shutdown using funds from 2022, so offices will remain open and online services will be available.
- Taxpayers need to file a return to receive a tax refund, and they have up to three years to claim it.
- Last year, about 104 million taxpayers received refunds, with an average refund of $3,167.
- People who file their tax returns electronically could get their refunds within 21 days or less if using direct deposit; paper filings could take four weeks or more.
- IRS has faced staff reductions, which may slow processing times and lead to delays in refunds.
- IRS staffing levels have returned to those seen in October 2021, with a significant backlog in processing returns.
- The Senate has passed a funding package to end the shutdown, but it requires approval from the House.
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