Expecting a big tax refund from the IRS? Then you don't want to read this...

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Refunds may be delayed due to deep cuts in the IRS.

If you're counting on a big IRS return to make a big purchase, you may be waiting a lot longer than anticipated this year. Budget cuts in the IRS mean that fewer returns will be audited and services will become increasingly difficult to obtain. Worst of all for many people, refunds will be badly delayed.

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Highlights

By Catholic Online (NEWS CONSORTIUM)
Catholic Online (https://www.catholic.org)
12/19/2014 (9 years ago)

Published in Politics & Policy

Keywords: IRS, taxes, refunds, delay, delayed, budget, cuts, audits, audit rate

LOS ANGELES, CA (Catholic Online) - The IRS takes on average, about three weeks to deposit a return for those who file electronically. Paper submissions naturally take longer. Each year, millions of Americans overpay their taxes, often deliberately, so they can enjoy a windfall in the spring after they file their returns. Most of these Americans file in February and by March they are injecting their tax savings into the economy.

However, the IRS has suffered a $346 million cut in finding for 2015, and the agency's budget is down by $1.2 billion overall compared to 2010.

Now is the time to make your tax-deductible donations for the year.

This coming year, according to the Congressional testimony of IRS Commissioner John Koskien, the agency will take much longer to process returns. Fewer people will be audited. Anyone who calls will take longer to reach a person and many people may never get through.

The IRS will have an increased workload as it audits returns for Obamacare compliance. In addition to simple compliance, the agency will have to correct any inaccuracies in subsidies paid to people who took advantage of Obamacare to get insurance. Many Obamacare patients are enjoying government payments towards their premiums because their income was means tested when they applied for insurance and as a result, they were granted subsidies. But for people whose income increased or who fibbed on their Obamacare application, the IRS will be responsible for collecting those tax credits back.

A hiring freeze has been put in place at the IRS, except for in emergencies and a number of staff have been laid off.

A natural consequence of this is fewer audits which means that tax cheats will have an easier time getting away with your tax dollars. At the same time, it could mean less revenue for the federal government to squander.

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