Inquiring minds across the country are tuned in to see what’s going to happen with the government shut down currently in place. With each new day that passes without movement on either side, concern grows that this could quickly become a long-term event with tremendous consequences for all.
One of the primary concerns among the roughly 141 million U.S. taxpayers involve income taxes and the affect the shutdown will have on their abilities to pay file and pay taxes. Of even greater concern to the nearly 62 percent of tax payers expecting refunds, is whether the shutdown will impact whether they receive refunds at all and, if they do receive them, how long it will take to do so.
Finance XOD can only go so far when it comes to explaining what the shut down means for the average person. Many people looking around see little, if any, direct impact from the government shut down (aside from those who are employed by the government and not currently receiving paychecks).
With mounting concern that the pressure placed on lawmakers to capitulate and come to an immediate agreement on the budget would be untenable, the IRS has determined it will issue refunds to taxpayers regardless of the government shutdown, according to Bloomberg.
With the average refund approaching $2,899, this news comes as a huge relief to struggling families who rely on this money to pay for necessary bills. For instance, some families use these funds to fill propane tanks that heat their homes for the winter. Others use them to make necessary automobile repairs. Regardless, these refunds help to fuel the post-holiday economy across the country.
While both sides benefit from the agreement to issue refunds, which has been denied during past shutdowns citing the Antideficiency Act, Republicans, eager for taxpayers to enjoy the benefit of new tax cuts, stand to gain even more from allowing the tax refunds to be issued on time rather than being held until after the shutdown has been resolved and the government is once again open for business.