NC State Regulations

Sequestration Deal – Can they do it by Friday and how it will affect YOUR TAX REFUND

The acting IRS Commissioner and Acting Treasury Secretary Neal Wolin say that IRS employees would be furloughed if no deal is reached regarding the upcoming sequestration. When a furlough goes into place, government employees are given a 30 day notice which would fall in early April – the height of tax season.

The result of these cut backs would be fewer government employees to handle the taxpayers’ questions, and to process returns.

Our advice: Get your taxes done as early as possible – No one knows what the outcome of the sequestration will be. Many are saying not to worry about the sequestration when it comes to your taxes because the majority of returns are processed automatically.

Refunds and tax questions aside, the sequestration and cut backs within IRS Staff could mean poorer assistance for victims of identity theft. The IRS has increased the number of staff dedicated to dealing with identity theft; however, these workers are often asked to answer inbound calls on the tax payer assistance line detracting from their identity theft investigation efforts.