Refunds may be delayed due to the partial government shutdown. Many IRS employees have been recalled, but some employees are claiming hardship exemptions. After not getting paid for a month, employees can actually not afford to go to work without pay, because they have no money to commute to work and pay for child care.
Hardship Exemptions
Under their union contract, IRS employees are allowed to miss work, if they suffer a hardship during a shutdown. The hardship exemption allows IRS employees not to have to use sick days to be absent from work.
File Returns Electronically with Direct Deposit of Refunds
With many employees claiming hardship and not working, the government’s ability to process refunds timely may be affected. We recommend filing returns electronically with direct deposit as a way to mitigate any possible delays.
William F. Cahalane, CPA Noreen M. Cahalane EA accounting and tax services for individuals and small business