As I write this post, it is being reported that 90% of the IRS employees have been furloughed due to the current government shutdown. The funding bill will be put to the new Congress on January 3rd and we will have to wait and see what happens.
Back in September, the Treasury Inspector General for Tax Administration (TIGTA) released a report explaining the challenges that the IRS is facing to implement the Tax Cuts and Jobs Act. It was estimated that it would take more than 1.1 million labor hours of 542 full-time employees to implement the new tax provisions. As of June 2018, only 117 current and new employees had been assigned to this task. In short, deadlines have not been met, staffing is not in place, and we are waiting for funding to even get back in the door.
The opening of the 2019 filing season, which usually happens toward the end of January each year, has not been set and most people are not even guessing as to when it will happen. We are really hoping that it is before April 1st.
Remember! You still have filing requirements!
Even though the IRS is only operating on 10% of its staff, taxpayers are still required to pay estimated taxes by January 15th, employers will still have to file W-2s and 1099s by the end of January and unless there is an act of Congress, you must still file and pay your income taxes by April 15th.
My free advice for this Friday – Buckle Up, Buttercup. It is going to be a bumpy ride!
Check back next Friday for some free advice regarding the no-longer available personal exemption.