Your Tax Refund May Be Delayed Due To The Government Shutdown

January 7, 2019

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The partial government shutdown has many Federal employees sitting on the sidelines or working output a paycheck until funding is approved.  Along with Federal parks and museums, the FBI, DEA and Border Security, the Internal Revenue Service is affected. Less than half (43.5%) of the agency’s roughly 80,000 workers are expected to work at the beginning of this year, under the IRS’s contingency plan. The good news is these workers will be able to process tax refunds but it is anticipated those refunds will be approved at a slower pace until all IRS employees return. Homebuyers might have a harder time getting proof of income for their home-loan applications. Lenders typically require a transcript called Form 4506-T, which verifies income for potential homebuyers. Under a government shutdown, the only transcripts the IRS will issue are those related to disaster relief efforts, not home purchases. Generally a W2 can be accepted but that may not work for everyone.  You should contact your mortgage broker for specifics needed for your loan. IRS call sites are also unavailable during the shutdown, which can add to frustration when specific questions need answers. Other agency responsibilities not supported in a government shutdown include legal counsel, service center processing (such as data transcription, error resolution or coding) and planning, training or development activities within the agency. And while it may sound like your payment to the IRS can be delayed, the agency is quick to advise those who owe to make payments on time.

SOURCE: Moneyish

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