Internal Revenue Service (IRS) system may not make the taxpayers happy as the average tax refunds went down by 8.4% in the first week when compared to the previous year. So if you are also facing the same issue this tax season, don’t worry you are not alone in this.
Americans who filed their taxes earlier got a refund of around $1,865 instead of $2,035 which was paid last year. These are the figures for one week only with the deadline on 15 April.
According to the IRS data, tax refunds went down by 12.4% with a dip of 25.8% in the tax returns processed. The executive director of the Tax Institute from H&R Block Kathy Pickering said,
We have said people will be surprised, but how that comes out in the aggregate is to be seen. Don’t put too much into these initial numbers from the IRS, because the volume is down and it may be hard to parse out the tax reform impact from the shutdown impact.
The 35-day government shutdown has affected hundreds of workers and now it is reflecting upon IRS as well. According to tax experts, there is a possibility of another government shutdown. This may further affect the tax returns.
Treasury Secretary Steven Mnuchin said that a lot of tax returns are being filed during this filing season. The IRS and Treasury employees are working with great efficiency to process the tax returns filed.
In December 2017, President Trump signed the Tax Cuts and Jobs Act after it was announced by the White House that on an average, the American families would get a raise of $4,000. Trump’s tax plans for mixed response from the tax experts.