Sequestration Deal: Can They Do It by Friday—and How It Could Affect Your Tax Refund

The IRS could face major changes if lawmakers don’t reach a sequestration deal by Friday. Both the acting IRS Commissioner and Acting Treasury Secretary Neal Wolin have warned that IRS employees may face furloughs. If this happens, workers would receive a 30-day notice—just as tax season hits its peak in early April.

Fewer IRS staff means fewer people to answer your questions and process your return.

Our advice: File early. No one knows how the sequestration will play out. Many experts say not to worry because most returns are processed automatically. Still, it’s better to be ahead of any delays.

Sequestration could also impact how the IRS helps identity theft victims. Although the IRS added more staff to handle these cases, those same workers often answer calls on the taxpayer help line. This pulls them away from important identity theft investigations.

Need help or have questions? Contact us today for guidance.