Government shutdown could delay tax refunds down the road

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WAUSAU (WAOW)– As the government remains closed, a delay in tax refunds to taxpayers is proving likely. With an incoming Democrat majority in the House of representatives, and Nancy Pelosi projected to be speaker, there is no sign of the government opening back up.

The IRS, relies on funding from the government, this has consequences of delaying tax refunds that many central Wisconsin families depend on.

“What I saw in one report was the IRS had 85% of employees not going to work right now. So therefore, if they don’t have there computers systems up and running for the new filing season. We could be talking about a big time delay”, said owner of Wausau Tax and Accounting, Curtis Day.

A  shutdown in 2013, where the government was shutdown for 16 days, caused a two week filing delay for the following year. The 2013 case was prior to the end of the year but still consequences for the next tax season.

“Once you file, there’s a couple weeks after that before you get your money refunded. So, It could put things off by a couple weeks, and that’s when it was settled ahead of time. I’m not sure what it means right now”, said Day.

The 2013 shutdown caused over $2 billion in refunds to be delayed according to a report form Obama White House archives. Tax season is short window to your finances of the year prior in order, and each week its delayed puts stress on the process.

“The longer the delay the more crunch theirs going to be”, said Day.

The shutdown has had other consequences in business when working with the IRS, other than taxes.

“We’ve already experienced a little bit of it. My partner tried to file for an identification number for a client, a new business, and that was rejected. You could not do it last week because of the shutdown”, said Day.

So all eyes will be on how long the government shutdown lasts, to see how long the delay in refunds and other services, will be.



Chase McNamara

Chase McNamara

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