Government Shutdown Will Delay Tax Returns & Refunds


Video by

Government Shutdown Will Delay Tax Returns & Refunds

By Meghan Matthews. CREATED Jan 14, 2014

Omaha, NE - "Usually, we start to get busy the first week of February." When it comes to crunching the numbers the O'Malley's over at Tax Help are pros.

"We have loaded our software so we have clients coming, I've already done one today."

 Filing a 2013 tax return is one thing but sending it to the IRS, right now, won't get you anywhere.
"Well I did my sons return, he already got his W2, and I filed it electronically and it said, well we're not even gonna look at it til the 31st. He's an adult, living on his own trying to make ends-meet. It's getting tough he sure could use the money right now so."
Jeff Kinghorn says his son is counting on the cash but he's going to have to wait on that and so will the rest of the nation.
"It is much later than in the past, we've been more around January 15th but compared to last year we are in a somewhat similar situation", says Bridget O'Malley-Tynan.
Late changes to federal tax laws delayed the start of the 2012 filing season by weeks. This year, the two week government shutdown in October is to blame.
"With the government shutdown this year, that testing was delayed 2 weeks so the IRS this year has been unable to test their systems", says Erin O'Malley-Anderson. 
The IRS isn't even accepting tax returns until January 31st. A delay that will also push back refunds.
"I usually buy something I need. A piece of furniture, or you know something like that."
"So for those people who are generally very very quick to get refunds might see a delay because those funds are coming out slower and slower."
The delays will ripple down to college students and parents when it comes to FAFSA forms. Not having an accurate tax return back in time for those deadlines, could affect loan and scholarship money.