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).
Dave Long, CEO and Co-Founder of Orangetheory Fitness joins Cheddar to chat trends in the industry for 2024. He updates us on the company's plans to expand and what the state of the economy has meant for business.
One of the world's largest renewable energy developers will be getting hundreds of wind turbines from General Electric spinoff GE Vernova as part of a record equipment order and long-term service deal.
A moon landing attempt by a private US company appears doomed because of a fuel leak on the newly launched spacecraft. Astrobotic Technology managed to orient the lander toward the sun Monday so its solar panel could capture sunlight and charge its onboard battery.
Treasury Secretary Janet Yellen has announced that 100,000 businesses have signed up for a new database that collects ownership information intended to help unmask shell company owners. Yellen says the database will send the message that “the United States is not a haven for dirty money.”
A new version of the federal student aid application known as the FAFSA is available for the 2024-2025 school year, but only on a limited basis as the U.S. Department of Education works on a redesign meant to make it easier to apply.
A steep budget deficit caused by plummeting tax revenues and escalating school voucher costs will be in focus Monday as Democratic Gov. Katie Hobbs and the Republican-controlled Arizona Legislature return for a new session at the state Capitol.
The first U.S. lunar lander in more than 50 years is on its way to the moon. The private lander from Astrobotic Technology blasted off Monday from Cape Canaveral, Florida, catching a ride on United Launch Alliance's brand new rocket Vulcan.
Global prices for food commodities like grain and vegetable oil fell last year from record highs in 2022, when Russia’s war in Ukraine, drought and other factors helped worsen hunger worldwide, the U.N. Food and Agriculture Organization said Friday.
Wall Street is drifting higher after reports showed the job market remains solid, but key parts of the economy still don’t look like they’re overheating.