Barry G. Fowler, EA, leading expert in tax resolution issues and CEO of Taxation Solutions explains why tax refunds are typically not paid during government shutdowns and encourages taxpayers to file their taxes sooner rather than later.
Houston, TX – January 24, 2019 – Barry G. Fowler, CEO of Taxation Solutions, posted a new article on the company website entitled “A Reversal Of Fortunes – The IRS Gets To Send Refunds During Shutdown,” in which Mr. Fowler points out that fear of public backlash prompted Washington to action.
Fowler writes, “Taxpayers will be relieved to know that the White House has given the IRS the green light to send refund checks even during the government shutdown.” He continues adding, “Typically refunds are not issued during government shutdowns as I mentioned in this month’s blog which I wrote before the reversal went into effect.”
According to The Washington Post, Fowler says, “The White House on Monday directed the Internal Revenue Service to pay tax refunds to millions of Americans during the federal shutdown, marking its most dramatic reversal yet of past legal precedent as officials scramble to contain public backlash from the funding lapse.”
“It is without doubt a complicated situation that is making tax season even more complicated this year,” says Fowler. He adds, “Many taxpayers depend on their tax refunds to pay down debt often incurred during the holidays. Others earmark their returns for bigger items like appliances and other expenditures.” He elaborates, “However, the government doesn’t recognize the delaying of tax refunds as life threatening. This is why this reversal may actually be an illegal move.”
Fowler turns again to the Washington Post article which states, “Sam Berger, who worked in the general counsel’s office at the Office of Management and Budget during a shutdown under the Obama administration, said the decision reverses years of precedent and runs contrary to the Antideficiency Act, the law establishing that federal agencies cannot spend money that has not been authorized by Congress.”
Fowler writes that Berger “went on to say that if the decision is found to violate that Act, it could carry fines or criminal penalties. But that is an issue for someone else to unravel. Meanwhile, other government funded programs like Social Security are paid during government shutdowns because non-payment would be considered life threatening.”
The entire article can be read at https://www.taxationsolutions.net/a-reversal-of-fortunes-the-irs-gets-to-send-refunds-during-shutdown/
About Barry G. Fowler, EA
Barry G. Fowler founded Taxation Solutions out of a genuine concern for the IRS issues his clients face, many of whom are self-employed, contract employees, or entrepreneurs. For his contributions to his profession and expertise in tax resolution and financial planning, Fowler has been featured as one of America’s Trendsetters on CBS and Yahoo, and as a Premier Expert in Inc. Magazine. He has been instrumental in helping hundreds of people resolve complex tax issues with the IRS.
Fowler is licensed to represent taxpayers before the Internal Revenue Service, and is a longstanding member of several tax industry professional organizations: NAEA, NATP, TSEA, ASTPS.