16 big questions for tax season

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by rick telberg
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the government shutdown could not have come at a worse moment for the internal revenue service.

the tax season will bring its annual avalanche of returns. the irs was already working with fewer agents than it had a few years ago, and now it’s even more shorthanded.

the new tax cuts and jobs act tax code is poorly understood by agents who need to be trained and taxpayers and tax preparers who need to be informed. even after the shutdown ends, the backlog will be overwhelming.

the biggest problem may be the uncertainties. we can think of at least 16:

  1. who will answer questions about the new tax code?
  2. how long will it take to get those answers?
  3. what should tax preparers do pending answers or clarifications?
  4. what happens with unfinished processes (audit, appeals, discussions) that were stopped short?
  5. what happens with deadlines and extensions?
  6. will there be penalties for errors that could have been prevented with an irs clarification?
  7. what happens with amended 2017 returns?
  8. what happens when things that needed to be done before april 15 aren’t done?
  9. are frustrated do-it-yourselfers going to swamp tax preparers with work? are tax preparers and cpas prepared to become de facto tax assistance centers?
  10. what happens if furloughed workers, now expected to work gratis, start quitting?
  11. what the legal consequences of taxpayers suffering due to irs negligence—the irs lien on income or assets, the student who needed irs information for fafsa student aid,  the company that went bankrupt for lack of reliable information, the penalties incurred due to irs inaction, the tax preparer sued for inadvertent negligence… the list is as long as the imagination of a good attorney.
  12. will replacement workers be as well prepared as the ones that quit? will their answers be reliable?
  13. will a lack of refunds stifle the economy?
  14. what are tax preparers supposed to tell clients about a) unanswerable questions, b) refund delays, c) returns that disappear into the irs, d) the length of predicted delays and other problems?
  15. when will this all end?
  16. when this all ends…will it be over, or will the backlog in hiring, training, processing, decisions, rescheduling appointments, rescheduling audits, catching up on security threats, and other functions continue far into the future?

in a statement, irs commissioner chuck rettig said, “we are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown. i appreciate the hard work of the employees and their commitment to the taxpayers during this period.”

however, the statement also promised that “…an updated fy 2019 lapsed appropriations contingency plan [would] be released in the coming days.”

many days have come and gone. there is a contingency plan at the treasury department website, but it is a plan for operating the irs, not a plan for people who need to deal with the irs. it seems that tax preparers are going to have to come up with their own contingency plans.

3 responses to “16 big questions for tax season”

  1. nick

    if the members of congress, both houses and parties were subjected to the same issues as the other government workers, being unpaid and forced to work, one can be sure that this issues of government shut down would have been solved many weeks ago. unfortunately they create their own rules, so that will never happen. the american population should vote all of the present members of congress out, as they don’t work for the americans, but solely for themselves, and what they can get for themselves. they are such hypocrites concerning the wall and the funding, when they have walls and fences around their own properties. the dems are rejecting what they voted for in the past, but not now. vote out all of them. unfortunately the american population are like sheep being led to slaughter believing everything that comes out of washington, and agreeing with the hypocrites. my grandparents and parents were immigrants who came to this country legally, and became american citizens, and worked for what they had, and did not receive free medical care, and all the other benefits the current immigrants are demanding, and not paying taxes either, as they only work for cash. a frustrated taxpayer.

  2. bob

    i agree that legal immigration is necessary and we need to keep the nation secure. the problem is that a $5 billion wall will do nothing to keep anyone out. i live near that border he wants to build on. the wall only benefits building contractors. give me a real security plan and trump can have $50 billion for something that will make a difference and not waste our tax money.

  3. trev

    the consequences of the shutdown on individuals financial situation is insignificant when compared to the suffering of americans from the activities of unknown persons entering the usa and in some cases committing horrendous crimes, robbery, rape, bodily harm, and murders. those tormented from these activities suffer more than financial hardship and cannot be adequately compensated.

    legal immigration is to be encouraged where persons contribute to the wellbeing of the usa and can support themselves.