Tax season is approaching, which means for some taxpayers they will finally receive their tax refunds to replenish their savings or tackle the home improvement project they’ve been saving for. For others, their refunds may be the windfall they’ve been waiting for to pay their April property tax bill or plan their summer vacation.
However, with the government shut down still in effect, many taxpayers may be at risk of receiving delayed income tax refunds. Already understaffed IRS offices have issued warnings about delayed tax return processing which includes delays in issuing tax refunds.
While filing your tax return earlier this year may help ensure quicker receipt of your refunds, we encourage taxpayers to be prepared for potential delays in receiving their 2018 income tax refunds.
Therefore, it is important to plan accordingly and budget for any major expenses that were expected to be covered by a tax refund. This would include spending the next three months setting aside funds to be ready to pay the April installment of your property taxes or any other financial obligations that may be due in the first half of the year.
Of course the IRS will continue to process tax payments as they are received. So if there is a balance due on your 2018 income tax return the due date of those payments remains the same and you should expect the IRS to deposit the check as soon as it is received.
In addition, any estimated payments that are due during the first half of the year will still be processed by the IRS. Therefore, these payments should be paid by their normal due date.