by Anthony Rivieccio
January 21, 2019
Financial Focus: Your Tax Refund has been Govt shutdowned!
So, we are in a Government Shutdown! And in today’s IRS ” agency” world, that means a lot of things, including being currently shut down. With a shutdown, the agency can process some tax returns that include payments and can keep their computer systems running and continue criminal investigations.
BUT the IRS generally doesn’t conduct audits, respond to taxpayer questions outside the filing season or—pay refunds.
The tax refund, is the single largest financial event of the year for many people, especially who count on large refunds to pay down debt, catch up on bills or make major purchases. Most early filers are low-income households that benefit from the earned-income tax credit and other provisions that give them a net benefit from the income-tax system.
In turn, retailers count on those households spending their refunds in February. So, yes, one would think by March, tax season , refunds and tax money would be starting to flow into our economy.
Last tax season, By Feb. 2, 2018, the IRS had paid $12.6 billion in refunds to more than six million households. By Feb. 16, the IRS had paid $101.2 billion to nearly 32 million households. And by March 30, the IRS had paid $212 billion to 73 million households.
But Hello Government Shutdown! Hello to slowing the future growth of our economy !
During the current shutdown, the IRS has lost funding and is operating with about 12% of its employees according to a UBS bank investment research report .
The IRS typically begins accepting tax returns at the end of January, and early filers can see refunds hit their account as early as February. An analysis by UBS estimated an overall increase of $42 billion to $66 billion in tax refunds this year over 2017.
If the shutdown drags on, early filers won’t receive the refunds they’re expecting, a gap that could put pressure on congressional negotiators and President Trump to reach a deal.
Our divided Government is stubborn. But we’re sure the people are going to want to be paid their tax refund. We predict the shutdown might last a few weeks but based on the attached chart, our Government will be jeopardizing it’s own health if this is not resolved by February 16th- or Government might indeed need a wall- to protect itsrlf from it’s in citizenry.
Anthony Rivieccio is the founder and CEO of The Financial Advisors Group, celebrating its 21st year as a fee-only financial planning firm specializing in solving ones financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Klipingers Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Bronx News, and The Bronx Chronicle. Mr Rivieccio is also currently an Adjunct Professor of Business , Finance & Accounting for both, City University of New York & Monroe College, a Private University. For financial assistance , Anthony can be reached at (347) 575-5045. If you would like a FREE copy of our 2018 Tax e-Guide just give our office a call. Feel free to visit their FACEBOOK Business page for past Financial Focus articles: www.facebook.com/iwantmytaxmoney
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