If Congress can not come to an agreement by midnight Friday the Government will shut down temporarily.
Keep in mind the shutdown, if it happens, will NOT DELAY the due date for taxes of April 18th, 2011!
According to Bloomberg, IRS Commissioner Douglas Shulman in a statement made a week ago (3/31).
“We’ve never had a government shutdown in the middle of the filing season before,” Shulman said in testimony before a House Ways and Means subcommittee in Washington. “The closer we get to April 15, the more consideration and factors are at play.”
People who file electronically and opt to receive their returns electronically “should expect to see refunds quickly,” Shulman said on Tuesday.
Tax returns using e-file are automated so if your tax return doesn’t need any special handling and you use the direct deposit option you could receive your tax refund on time. However, if you file a paper return, you are expecting a paper check or your tax return needs special handling (Injured Spouse, Offsets, etc.) expect them to be delayed!
The length of the delay, if any, will depend on how long it takes Congress to agree so that ‘nonessential’ federal employees could return to work.
Approximately 70% of tax returns are now filed electronically.
Tax returns filed with paper generally take six to eight weeks to process, while e-file returns generally take seven to ten days or so.