*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).

Share:
More In Business
Al Sharpton to lead pro-DEI march through Wall Street
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
A US tariff exemption for small orders ends Friday. It’s a big deal.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines’ new policy will affect plus-size travelers. Here’s how
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Load More