Tax Filing Season Opens as IRS Comes Back to Massive Backlog
*By Carlo Versano*
Tax filing season is officially upon us, just as the IRS returns to full strength following the five-week government shutdown. But tax filers should expect some turbulence along the way, said Nicole Kaeding, director of federal projects at the Tax Foundation, a tax policy think tank.
Before the shutdown threw a wrench in things, the IRS was already anticipating some headaches, given that 2019 marks the first tax year since President Trump's Tax Cuts and Jobs Act went into full effect ー the first overhaul of the tax system in three decades. That law affects every taxpaying household, and while 80 percent of Americans have a lower tax liability as a result, Kaeding said, many refunds will smaller than in past years because more taxpayers had less taken out of their paychecks through the year.
Last year, the average refund was $3,000. This year, "they might not be as big," according to Kaeding.
But because of the shutdown, furloughed IRS employees are coming back to face an estimated 5 million pieces of unopened mail, which could take them 12 to 18 months to sort, Kaeding said, though the administration still [says](https://www.politico.com/newsletters/morning-tax/2019/01/28/welcome-filing-season-492445) it expects a fairly smooth tax season.
By Feb. 15 last year, tax agents had already processed $100 billion in refunds, as mostly low- and middle-income taxpayers tend to file quickly to take advantage of tax credits. This year on Feb. 15, the government could conceivably shut down again. Even if it doesn't, taxpayers should plan for some slowness in receiving their refunds as the IRS works through the backlog from the last five weeks.
For full interview [click here](https://cheddar.com/videos/why-a-bigger-tax-refund-is-no-sure-thing).
The Federal Communications Commission knows (to loosely quote Drake) "when that [AI robocall] hotline bling, that can only mean one thing" — deception. The agency says bad actors have been using these voices to misinform voters.
David Stryzewski, CEO of Sound Planning Group, breaks down Disney’s latest results, from adding Taylor Swift to building out ESPN, and why Bob Iger’s leadership is crucial.
Kevin Cohee, CEO and chairman of OneUnited Bank, discusses the power of financial literacy and how education and technology can help bridge the racial wealth gap.
Alex McGrath, Chief Investment Officer at NorthEnd Private Wealth, discusses why the A.I. hype can’t power the market forever and how to position investments in the current market.
Paul Verna of Insider Intelligence breaks down how the company is positioned, whether they can make their streaming service profitable, and the upper limit of streaming bundle prices.
From Flamin’ Hot Cheetos to Sweet Heat Starburst, America’s snacks are getting spicier. Now, Coca-Cola wants in on the trend. The beverage giant introduced Coca-Cola Spiced, the first new permanent offering to its North American portfolio in three years.
Taylor Swift’s camp is hitting Jack Sweeney, a junior at the University of Central Florida, with a cease-and-desist letter that blamed his automated tracking of her private jet for tipping off stalkers as to her location.