Even if the partial government shutdown continues into the tax filing season, the Internal Revenue Service stated late Monday that tax refunds will still be issued, and the agency will begin receiving tax returns on January 28.This comes after the acting head of the White House Office of Budget and Management declared on Monday that tax refunds would still be handed out even if the government was shut down.

To process tax returns during the government shutdown, the Internal Revenue Service (IRS) plans to bring back a "significant portion" of the staff who have been furloughed. They will provide further information when the agency finally unveils its shutdown contingency plan, which should happen within the next several days.

The shutdown might make what will already be a very unusual tax filing year even more challenging since it will be the first year that significant tax code changes are implemented. This is what you need to be aware of.

Will the Government Shutdown Have Any Impact on My Tax Return?

If you have questions regarding your tax return and want to raise those questions directly to an IRS official over the phone, you may be required to postpone filing your taxes for a short period. During the government shutdown, the Internal Revenue Service (IRS) had smaller personnel, which resulted in a lower ability to answer phone inquiries. Everyone who phoned the IRS with a tax query was not provided with a response to their inquiry. This will continue through the tax season and may continue throughout the entire season. The fact that this is the first tax filing season with the new tax laws makes this particularly alarming since it is likely that people will have a lot of questions as a result.

A reliable tax preparation service will also respond to the majority of queries you have concerning your return if not all of them. Consider dealing with a financial advisor specializing in tax matters if you have an extremely complex tax position.

What Happens If There Is Another Shutdown?

It is essential to note that the agreement ending the government shutdown only granted money until February 15. There will be another suspension of government operations if lawmakers cannot reach another deal before that date. If there is another closure, it will occur during the busiest part of tax season.

Even if there is another government shutdown, you will likely experience significant delays in receiving your refund. It seems likely that essential personnel will continue to work for the IRS, just as they did in the days preceding the start of the tax season. The only possible exception to this rule is the potential for delays towards the conclusion of tax season if a government shutdown occurred after February 15 and continued for a considerable time.

Returns, Including EITC or ACTC Credits

If you filed your taxes early and claimed the earned income tax credit (EITC) or the extra child tax credit (ACTC), your refund will arrive roughly February 27 at the earliest. If taxpayers claim any of these credits, the Internal Revenue Service (IRS) must legally withhold their refunds until February 15. You will still have to wait several weeks for your refund even if you submit your tax return on the first day the IRS accepts them.

However, this is not a consequence of the government shutdown. The additional time allows them to verify that the returns that claim these credits are indeed eligible for these credits.

The Takeaway

The 35-day shutdown that began on December 22, 2018, and ended on January 25, 2019, was the longest in American history. However, the IRS has been continuing its preseason preparations, so your tax return will be processed smoothly. That also ensures your refund won't be affected by the government shutdown.

The worst thing that may happen is that you need help contacting the IRS via phone. Consider consulting the IRS's website if you need help with your tax return. The IRS advises taxpayers to e-file and chooses direct deposit of any refund to avoid further delays.