White House Says Shutdown Won’t Interrupt Tax Refunds

White House

The White House announces that government remains in a state of partial shutdown, and if it continues throughout the entirety of this week, it will become the longest in U.S. history. The Departments of State, Treasury, Interior, Agriculture, Commerce, Housing, Transportation, Homeland Security, Health, and the Executive Office of the President are all directly impacted by the funding lapse.

Because the shutdown coincides with the early tax season, there has been some concern that refunds would be delayed. The IRS, part of the Department of the Treasury, is currently running at reduced staff levels.

According to Budget Director Russel Vought, tax refunds will still be processed even if Congress is unable to resolve the shutdown this week.

Some Concern that White House Won’t Be Able to Honor its Promise

While the White House has made it clear that refunds won’t be delayed when tax-filing season opens on January 28, there are some Washington insiders who aren’t convinced.

Democratic Representative for Massachusetts, Richard Neal, said this week that “I look forward to seeing a more detailed description of how the agency will carry out these operations, particularly what will be expected of Treasury and IRS personnel. These developments are no substitute for funding the government and fully reopening these agencies.”

According to White House officials, the IRS will recall thousands of workers who are currently furloughed. It is understood that they will not be paid until the government resolves the current funding impasse. Neal, who is also the Chairman of the House Ways and Means Committee, believes that the IRS may not have the power to recall workers without pay.

IRS Commissioner Charles Rettig told the press that “We are committed to ensuring that taxpayers receive their refunds not withstanding the government shutdown.”

Administrations during previous shutdowns determined that they didn’t have the legal power to recall furloughed workers or issue refunds. The current administration would be the first to break the trend.

Refunds Would Ease Public Negativity

Shutdowns are never popular with the public, and an interruption to filing season could be particularly bad for the current administration. If the White House and IRS can ensure that the season goes ahead without disruption, it could help to relieve pressure so that Trump and his party can focus on negotiations in Congress.

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

You May Also Like