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Government Shutdown Could Postpone Some Tax Refunds

The Internal Revenue Service has warned that tax refunds may be delayed for paper-based tax returns in the event of a government shutdown.

IRS Commissioner Doug Shulman said Wednesday that the April 18 deadline for tax filing would not change in case a government shutdown occurs, but urged taxpayers and preparers to use electronic filing. “The most important thing I can communicate is file your tax return,” he said at the National Press Club. “We’re going to be accepting returns. Electronically file. You’re not going to see any delay.”

On the positive side, IRS audits may be delayed during the government shutdown period, according to administration officials. However, customer service for taxpayer questions may also be affected.

On Thursday, President Obama met twice with Senate Majority Leader Harry Reid, D-Nev., and House Speaker John Boehner, R-Ohio, following a Wednesday night meeting, in an effort to close a deal on keeping the government running. He said Thursday that he expects “an answer in the morning” from them on a budget agreement between Republicans and Democrats in Congress to avert a shutdown.

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