Buzz
Tax season officially begins on January 28, and experts are recommending that people start filing their taxes as soon as possible to avoid delays in receiving their refunds.
There are two main reasons for this: Firstly, the government remains shut down, and while the IRS is requiring employees to work and process returns without pay (if you'd like to support federal workers, check out this article), delays are very likely. If you need assistance or need to contact the IRS for any reason, don’t expect a swift reply.
“If the IRS falls behind due to the shutdown, you certainly don’t want your return caught in a potentially huge backlog,” says Kiplinger.
The main factor, however, is that this year marks the first time that most of the provisions from the 2017 tax law will take effect. With the shutdown also in play, it's a perfect storm for refund delays and tax-related complications.
If you plan to see a CPA, make sure to do so as soon as you get your tax forms. Even though tax professionals have likely been preparing for the season, this is still the first time they’ll be handling the new law and its many changes to previous rules. Additionally, it’s the first year filers will be using the new “postcard-sized” Form 1040.
“The October 2013 shutdown caused a lot of stress for practitioners,” said Edward Karl, vice president of taxation at the American Institute of CPAs, to CNBC. “If an issue arose and you needed to contact the IRS, you couldn’t reach them.”
Moreover, anti-fraud measures were implemented last year for individuals claiming the earned income tax credit or the child tax credit, which delayed refunds until mid-February. When you add these other factors, it’s possible you could face a longer wait to receive your refund.
Rest assured, you will receive your refund eventually. However, if you’re counting on that money for something (even if it’s just stashing it in a savings account), you'll want it sooner rather than later. Be sure not to wait until the last minute to file this year.
