The US Internal Revenue Service (IRS) has said the income tax filing season will begin on 28 January this year and that it will pay refunds to taxpayers despite the continuing government shutdown.
As a result, the agency told CNBC that it would recall a “significant portion” of its workforce, summoning them back to work without pay. The announcement confirms a statement from Russell T. Vought, acting director of the White House Office of Management and Budget, who indicated that federal income tax refunds would be paid even though the government was still not operational.
Some 800,000 federal workers are either furloughed or working without pay following a standoff over funding for a southern border wall between President Trump and the Democrats, which now control the House of Representatives.
According to the IRS’ plan, only about 12% of staff are expected to continue working through a shutdown outside of filing season, which means certain functions such as answering taxpayer questions have been curtailed.
Nicole Kaeding, director of federal projects at the Tax Foundation, said that employees dealing with the processing of returns and customer service had mostly already been furloughed.
“How will they bring those employees back, and will they be compensated while they're working?" she asked. "Those are some large questions that haven't been answered, even though they said refunds would be processed."
With the IRS mostly closed for business, taxpayers have been unable to obtain routine tax transcripts and other documentation used for income verification, according to Forbes. Without such information, lenders may be forced to delay financing or refinancing mortgages and other loans. The IRS has announced steps to offer some relief during the government shutdown.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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The US Internal Revenue Service (IRS) has said the income tax filing season will begin on 28 January this year and that it will pay refunds to taxpayers despite the continuing government shutdown.
As a result, the agency told CNBC that it would recall a “significant portion” of its workforce, summoning them back to work without pay. The announcement confirms a statement from Russell T. Vought, acting director of the White House Office of Management and Budget, who indicated that federal income tax refunds would be paid even though the government was still not operational.
Some 800,000 federal workers are either furloughed or working without pay following a standoff over funding for a southern border wall between President Trump and the Democrats, which now control the House of Representatives.
According to the IRS’ plan, only about 12% of staff are expected to continue working through a shutdown outside of filing season, which means certain functions such as answering taxpayer questions have been curtailed.
Nicole Kaeding, director of federal projects at the Tax Foundation, said that employees dealing with the processing of returns and customer service had mostly already been furloughed.
“How will they bring those employees back, and will they be compensated while they're working?" she asked. "Those are some large questions that haven't been answered, even though they said refunds would be processed."
With the IRS mostly closed for business, taxpayers have been unable to obtain routine tax transcripts and other documentation used for income verification, according to Forbes. Without such information, lenders may be forced to delay financing or refinancing mortgages and other loans. The IRS has announced steps to offer some relief during the government shutdown.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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