The government shutdown could affect income tax filing this year, but that impact will become more significant the longer it lasts.
University of South Carolina accounting professor Donna Bobek Schmitt told South Carolina Radio Network the impact of the 2017 tax revamp could also slow things down at the IRS, where most employees are not on the job due to the ongoing shutdown.
“They were already under the gun with all the changes that occurred from The Tax Cut and Jobs Act,” she said. “On their website there are still 2018 forms that aren’t available. They made a lot of changes to the forms, so they look a lot different than they did in previous years.”
One year ago, Congress passed the biggest overhaul of the federal tax code in 30 years. As Americans start to think about filing their 2018 tax return, a slew of updates from The Tax Cuts and Jobs Act could alter their situation and result in a big difference in how much they owe.
Some of the more prominent changes include increases to standard deductions, elimination of personal exemptions, updates to tax brackets and rates, and limits on deductions for state and local taxes.
Schmitt said the shutdown for now will be more of an inconvenience to early filers. However, the longer it lasts, the bigger a potential delay for those tax filers who are owed a refund from the IRS.