As most people know, the “non-essential” parts of the Federal government have been shut down due to lack of funding and budget compromise since December 22nd. With no immediate end in sight, what does this mean for your 2018 tax filings and potential refunds in 2019?
With the Tax Cuts and Jobs Act (TCJA), many more individuals and families were hoping for a larger tax refund this year. Since about only 10% of the normal IRS staff is still active during the shutdown, that means refunds cannot be paid until the budget compromise is resolved. Thus, refunds could be delayed longer than usual. Along with refunds, tax returns normally start to be accepted around the 3rd or 4th week of January. With the TCJA, this was also expected to be slightly delayed due to the new 1040 form for all filers. The shutdown could delay this process even further. Also, the IRS cannot conduct audits during this time. With all of this in mind, let’s hope for a speedy resolution!
Key list of functions that will impact taxpayers:
- No tax refunds issued
- No processing of non-disaster relief transcripts
- No processing of forms 1040X, amended returns
- No non-automated collections
- No audit or examinations (some exceptions apply)
- No legal counsel
- No call center during Non-Filing Season
Federal departments affected by shutdown
- Agriculture
- Commerce
- Homeland Security
- Housing and Urban Development
- Interior
- Justice
- State
- Transportation
- Treasury
For federal employees OPM furlough guidance:
https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/
Federal government shutdowns since 1976:
Shutdown | Start | Duration | President | Senate | House | Key Reason |
1 | 9/30/1976 | 11 | Gerald Ford | Democrats (62-38) | Democrats (291-144) | HEW/Labor |
2 | 9/30/1977 | 13 | Jimmy Carter | Democrats (59-41) | Democrats (292-143) | Abortion |
3 | 10/31/1977 | 9 | Jimmy Carter | Democrats (59-41) | Democrats (292-143) | Abortion |
4 | 11/30/1977 | 9 | Jimmy Carter | Democrats (59-41) | Democrats (292-143) | Abortion |
5 | 9/30/1978 | 18 | Jimmy Carter | Democrats (59-41) | Democrats (292-143) | HEW / minor Abortion |
6 | 9/30/1979 | 12 | Jimmy Carter | Democrats (58-42) | Democrats (277-158) | Abortion |
7 | 11/20/1981 | 3 | Ronald Reagan | Republicans (53-47) | Democrats (244-191) | Domestic spending cuts |
8 | 9/30/1982 | 2 | Ronald Reagan | Republicans (53-47) | Democrats (244-191) | Social Engagements – Barbecue at the White House |
9 | 12/17/1982 | 4 | Ronald Reagan | Republicans (53-47) | Democrats (244-191) | Public works job program / MX & Pershing II missile program |
10 | 11/10/1983 | 4 | Ronald Reagan | Republicans (54-45) | Democrats (271-164) | Education, Aid for Israel/Egypt, less aid to Syria / El Salvador |
11 | 9/30/1984 | 3 | Ronald Reagan | Republicans (55-45) | Democrats (270-165) | Crime bill, Water project/ law reversing Title IX of the Civil Right Acts for colleges |
12 | 10/3/1984 | 2 | Ronald Reagan | Repbulicans (55-45) | Democrats (270-165) | Crime bill, civil rights bill, water projects, and Nicaragua Anti communist Contra Guerrillas |
13 | 10/16/1986 | 2 | Ronald Reagan | Republicans ( 53-47) | Democrats (253-182) | Welfare expansion / government’s privatization – Conrail |
14 | 12/18/1987 | 2 | Ronald Reagan | Democrats (54-46) | Democrats (258-177) | Nicaragua, Fairness Doctrine-FCC |
15 | 10/5/1990 | 4 | George H.W. Bush | Democrats (55-45) | Democrats (258-176) | Reduce the Deficit |
16 | 11/14/1995 | 5 | Bill Clinton | Republicans (53-47) | Republicans(233-199) | Meicare Premiums, Enviromnemntal regulations, balance the budget |
17 | 12/16/1995 | 21 | Bill Clinton | Republicans (53-47) | Republicans(235-198) | Use of economic forecasts to balance budget plan |
18 | 10/1/2013 | 16 | Barack Obama | Democrats (54-46) | Republicans (232-200) | Ted Cruz, Discretionary spending, Obamacare |
19 | 1/20/2018 | 2 | Donald Trump | Republicans ( 51-49) | Republicans(235-193) | Immigration |
20 | 12/22/2018 | 13* | Donald Trump | Republicans (51-49) | Republicans(235-193) | Immigration / Trump Wall |
Republicans (53-47) | Democrats (235-200) | Immigration / Trump Wall |