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).
Americans stepped up their spending in December more than expected, closing out the holiday season and the year on an upbeat tone. The Commerce Department said retail sales rose 0.6% in December compared with a November’s 0.3% increase.
Christine Short, VP of Research at Wall Street Horizon, shares insights on small and big banks earnings, a fresh round of layoffs in the tech world, and what to expect from upcoming rate decisions.
More executives are feeling better about the global economy. But a growing number don’t think their companies will survive the coming decade without a major overhaul because of pressure from climate change and technology like artificial intelligence.
The International Olympic Committee has signed the first beer brand in the 40-year history of a sponsorship program that earns billions of dollars for the organization and international sports.
The latest calculations from several science agencies showing Earth obliterated global heat records last year may seem scary. But scientists worry that what’s behind those numbers could be even worse.
Along with the $122 million from delinquent millionaires in October, nearly half a billion dollars in back taxes from rich tax cheats has been collected.
Greg Moran, CEO of Zoomcar, joined Cheddar to talk about the growth of the car-sharing platform, the company's recent debut on the NASDAQ, and its continued work in emerging markets.