Your Tax Refund Could Be Delayed!
By John G. Merna, Esq.
Over 100 million taxpayers could see a delays in receiving their tax refund this February if tax cuts now being considered by Congress are too drastic.
According to outgoing IRS chief, John Koskinen, cuts specifically to the now under funded IRS budget could have a catastrophic effect on tax payers, reports USA Today.
IRS hardware and software are outdated to the point that a decrease in funding could result in a catastrophic system failure, said Koskinen. If that failure occurs 100 million taxpayers could see their estimates $275 billion in refunds disrupted.
An additional threat to tax refund season is an upcoming budget deadline that could shutdown the federal government this holiday, which many politicians are staying mum about. Stay tune to Merna Law blog .
HOW TO PROTECT YOUR TAX REFUND.
First, if you have outstanding judgments from lawsuits your tax refund could be in jeopardy. While an ordinary creditor can not garnish your refund directly from the federal government, they can grab it from your deposit account, debit card account, an other financial accounts you might keep it in. Contact us immediately to find out how to make sure this doesn’t happen.
To protect your money, consider opening a new account in a back you have not used before. If you do it right before you submit your tax return electronically, there is little risk the creditor could find the account before you refund is deposited. With time however, the account can be found and garnished.
The only sure way to rebuild your credit and reduce the stress of creditors chasing and harassing you is to get a fresh start through bankruptcy. The righting is on the wall if you are reading this. Tax refund time might be the time to financial get yourself back on the right road to wealth, buying a new home, having decent interest rates, etc. A bankruptcy fresh start is the gateway to a brighter financial future.
HOW TO GET YOUR REFUND EARLY.
If you get a large tax refund whether by overpayment of taxes or federal credits, you are currently withdrawing too much from your check from now until the end of the year. You can have more money in your hands now and for the holiday season if you adjust your tax deductions via your W-4. You can use this IRS link to calculate the proper amount you should be withholding from your income the rest of the year. It may be that you can halt taxes coming out of your pay for the rest of the year. This will reduce the risk of a creditor grabbing it. If you have any questions you can talk to your tax preparer or give us a call. We provide this type of tax protection advice to all our clients.
Stay tune to our blog for any updates about risks or delays to your tax refund.
Remember, “Fresh Starts…Start Here” at The Merna Law Group. Have a Happy Thanksgiving.