IRS, Tax Filing Amid Partial Government Shutdown and TCJA

IRS, Tax Filing Amid Partial Government Shutdown and TCJA Well, to say the 2018 tax filing season will be interesting is a gross understatement. Not only are all taxpayers and tax preparers dealing with the largest tax reform in 30+ years, we are also in a partial government shutdown. Initially, it was believed that as long as this partial shutdown continued, only 12% of the IRS’ workforce would even be active, with the remaining furloughed. On January 8th, it was announced that the IRS is going to recall a significant portion of its workforce, without pay for the time being. There is not yet a revised contingency plan. Additionally, tax season filing officially kicks off on January 28th. So, beginning January 28th, taxpayers will be able to file their 2018 tax returns. Will there be delays if you are due a refund? Possibly. And if the IRS is like the TSA, you may end up with workers calling in sick, being less efficient, or less helpful since many will be working without pay as long as this partial shutdown continues, or Congress takes steps to be certain IRS workers receive pay. Now, with that said, still expect delays. This is the first filing season in which the sweeping changes of TCJA apply. Some clients will not be impacted and their returns will be as simple as ever. Other clients will face increased fees due to increased complexity. Still, other clients will face delays for numerous reasons, so expect more extensions to be filed compared to prior filing seasons. I have held off on sending out tax organizers, but will soon be doing so. At minimum, please begin gathering documents, though I realize most tax forms you need will not be available until later this month or February, some even later such as K1s. Sincerely, Greg Bennett, CPA