In Cash Management, TAXES AND PAY

The federal government now approaches two weeks of the partial government shutdown.

Government shutdown impacts tax refunds

The IRS is only providing partial services.  The IRS will not at this time process tax refunds, process 1040x – amended tax returns and halt examinations and audits.  However, keep in mind, the IRS is still processing tax returns, payments and criminal investigations will continue as planned.

With tax season starting January 29th, this is a big deal.  Taxpayers who may rely on their tax refunds (if the government shutdown continues) will more than likely experience delays.  Also, certain agencies will not be able to provide services, such as loans, recreational and more at this time.

Federal employees still without pay

Many federal employees, who are without pay, have a few options.  These workers should consider filing for unemployment benefits. If the federal government shutdown comes to an end and the employee receives pay retroactively, employees may be required to pay the amounts back.  Keep in mind, depending on the state you reside in, it may take some time before you receive your payments. This is why it is important to apply as soon as you are able.

Second jobs could be prohibited

Employees should be careful when considering a second job. Employees – although furloughed are still considered employees of the federal government.  As such, they would have to check with the Office of Personal Management (OPM) regarding stipulations and guidelines regarding outside employees. In addition, there is more information for federal employees.

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