Colliton

budgeting process began and the third shutdown since the beginning of the Trump administration, came as taxpayers and preparers readied to deal with the massive changes in tax law from the Tax Cuts and Jobs Act passed late last year. Expect complexity.

Initially, the thought was that tax refunds would be delayed. There was a reversal regarding that thought. Probably recognizing the public outcry that failure to issue tax refunds would generate, the government advised they would be. However, auditing and processing of other paperwork could expect to be delayed.

During the shutdown, the IRS will process original electronic and paper filed returns and accept payments. Taxpayers will still be expected to file and pay taxes on time. The Internal Revenue Service will issue refunds to taxpayers even if the U.S. government shutdown extends into the filing season.

Tax preparers may be unable to access some information from the IRS that used to be available. For instance, if IRS information is needed to verify some tax return numbers, that may not happen. Individuals needing confirmation of their federal tax information for state return purposes or to qualify for loans can be affected as well as those affected by IRS audits which can be expected to slow.

Reports regarding other agencies indicate other delays. Among those reported: the Food and Drug Administration is not expected to be doing some routine food safety inspections. The SEC would not be able to approve new initial public offerings. With mortgage lenders unable to verify borrowers’ incomes, some home closings may be delayed. Some fishing boats in Alaska are stuck in dock, in need of federal permits and inspections. The Agriculture Department has found funds to provide food stamp assistance through February but expects to run out after that.

As reported by several news sources, Immigration Courts are reported to have closed, causing judges to indefinitely postpone hearings scheduled months in advance. There is an estimated backlog of more than 800,000 immigration cases for resolution.

What would continue would be Social Security payments for individuals in the system and Medicare and Medicaid payments.

Stay tuned. Janet Colliton, Esq. is a Certified Elder Law Attorney and limits her practice to elder law, retirement and estate planning, Medicaid, Medicare, life care and special needs at 790 East Market St., Suite 250, West Chester, Pa., 19382, 610-436-6674, colliton@ collitonlaw.com. She is a member of the National Academy of Elder Law Attorneys and, with Jeffrey Jones, CSA, cofounder of Life Transition Services LLC, a service for families with long term care needs. Tune in on Wednesdays at 4 p.m. to radio WCHE 1520, “50+ Planning Ahead,” with Janet Colliton, Colliton Elder Law Associates, and Phil McFadden, Home Instead Senior Care.