FX Excursions

FX Excursions offers the chance for once-in-a-lifetime experiences in destinations around the world.

Tax Time

Mar 1, 2019
March 2019

AS WE ALL KNOW, the U.S. government shut down for 35 days earlier this year. As of this writing, another shutdown loomed. Because of the shutdown, the IRS has been short-staffed. Even though IRS workers were ordered to return to work, many continued to skip, claiming financial hardship due to not receiving a pay check, citing their inability to put gas in their car or pay for child care, among other reasons. They were to receive back pay upon returning to work.

This tax season was already shaping up as a tough one due to the new tax laws enacted for 2018. The government shutdown exacerbated the situation. The new tax laws have had a ripple effect for a few different reasons. First, the withholding tables were changed; as a result, some groups estimate tax refunds will be more common, while others believe taxpayers will owe more this year. There have been discussions about lowering or abating the penalties for taxpayers who have not had enough tax dollars withheld due to the changing of the tax tables. Also, because of the tax law changes — and historically speaking — more incorrect tax returns will be filed, slowing the IRS’s ability to process tax returns.

In addition, since the new tax laws were enacted so quickly, many tax professionals are still waiting for guidance, further slowing things down. Many cases were put on hold during the shutdown and now need to be resurrected. The amount of work to be done exceeds the number of workers who can do it quickly. It will make the IRS employees’ to-do lists rather lengthy.

If you have a question for the IRS or an audit or issue that was to be worked on prior to the shutdown, it will take some time, and you may be on hold for lengthy periods before you can get your issue resolved.

For those hoping or knowing they will receive a refund and looking for the best way to receive it expeditiously, take these two important steps. File your return electronically; while most taxpayers do this already, some still file with paper. If your tax return shows you are entitled to receive a refund, be sure to have it electronically deposited into your bank account.

The tax laws are different for 2018, so if you are preparing your own return, be cognizant of the changes. If you have a professional assisting you, be sure to ask what, if anything, you should do differently in 2019.

The content of this article is for informational purposes only. It is not intended to be a substitute for professional financial advice. Always seek the expertise of a certified financial advisor or other qualified provider with any questions you may have regarding personal finance, investment and money-related issues.

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