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Tuesday, February 24, 2015

Tax Refund Late, 2015 - IRS Says it could be Delayed a Couple of Weeks

NEW YORK (CNNMoney) — As much as people may hate paying taxes, they do love their refunds.
Normally, the IRS cuts its refunds checks pretty quickly. But this year, because of budget cuts, IRS Commissioner John Koskinen has warned that there could be a delay in issuing them.
People who file paper tax returns could wait an extra week for their refund — “or possibly longer,” wrote IRS Commissioner John Koskinen in a memo to employees Tuesday. And filers with errors or questions that require additional review will also face delays.
Last month, Congress approved a $10.9 billion budget for the IRS for fiscal year 2015, which ends in June. That’s the lowest level of funding since 2008, Koskinen said.



Koskinen said the budget cuts would result in several other changes at the agency, including:
Fewer audits. Due to cuts in enforcement staff, collection efforts for individuals and businesses will be reduced.
Hiring freeze. The freeze, plus normal attrition rates, will result in 3,000 to 4,000 fewer full-time employees at the agency by the end of June. Including the headcount losses incurred since 2010, that means the agency’s full-time staff will be reduced by as many as 17,000 employees over the course of five years.
Less taxpayer help. Cuts in overtime and temporary staff hours will not only delay refunds, but hurt correspondence with taxpayers as well. Koskinen said it’s likely that fewer than half the taxpayers that call the agency will be able to get through.
A possible two-day shutdown after tax season. To minimize disruptions, Koskinen said a temporary shutdown, if needed, would likely occur closer to June. But, he added, the agency will do what it can to avoid this option, which he called a “last resort.”
Delays in IT investments. Among the delays, will be technologies that offer new taxpayer protections against identity theft.

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