The 2018 Tax Season will be up and running January 28th 2019 despite the government shutdown. E-file is set to open on that date and as of now, refunds are to be scheduled as usual. While the government shutdown is already the longest in history, the scheduled refunds are expected to be delivered to taxpayers on time however there is a growing doubt if that is going to be honored. IRS commissioner Chuck Rettig said “We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown”.

When this was said, the IRS only had about 10,000 employees which is 12% of the usual workforce. There was a new contingency plan that has been released on January 15 that had the IRS call back more of their staff and increase it to about 46,000 employees which makes up over 50% of their full workforce. There still is a good amount of doubt from taxpayers, tax experts, and IRS employees that the increase of employees called back may help keep the IRS on schedule with processing tax returns and issuing refunds to the taxpayers. To further complicate matters, the brand new Tax Cuts and Jobs Act (TCJA) will take effect in 2018.

The filing deadline is still set to be Monday April 15th 2019 for most taxpayers and April 17th due to Patriots Day holiday that is recognized with taxpayers who live in Maine and Massachusetts. I encourage all my clients to gather their information as usual. Contact our tax office in Sierra Madre at 626-355-1242 or to have your 2018 tax returns ready. We can file your 2018 tax return before the 28th date and it will be queued until the opening of the 2018 tax season.