Tax refund delay

[JN01]

I didn't see if this has been discussed before, but apparently the working stiffs that Obama cares so much about are going to have to wait to get their money back next year: http://nationalreport.net/2014-federal-tax-refunds-delayed-october-2015/

The deadline to have your Federal taxes filed will remain April 15th, but under new directives issued to the IRS no refunds are to be issued before October 15th, 2015. This means that early filers who normally receive their refunds around the beginning of February will have to wait an additional 7 months longer than normal to get the money owed to them.
The directive to delay tax refunds is being championed by the Obama administration, which claims that the measure will save the Federal Government billions of dollars. Every year the Federal Government returns around 350 billion dollars of what it has collected. By withholding repayment until October the Government stands to save an estimated 30 billion dollars on borrowing costs and additional interest generated from the withheld funds.

 
The change is not to be applied equally though. The new rebate delay only effects those who have filled for individual income tax and payroll tax refunds. Large corporations and small businesses will still be eligible to receive whatever tax is owed to them by the Federal Government within normal historic timeframes.
White House Press Secretary Josh Earnest defended the upcoming changes to IRS tax refund policy. “It’s a minor cost saving measure initiated by the administration with bipartisan support”, said Earnest. “The recommendation to initiate this new refund structure came out of the Committee On Ways And Means, under the leadership of Republican Congressman David Camp. Absolutely zero dollars are going to be kept that is owed to hardworking Americans. All you are seeing here is a policy change streamlining the way in which the IRS structures tax refund repayments. Americans who find this objectionable can always opt to bring their tax withholding more in line with the actual taxes they will owe in the future.”

They are not keeping the money, they just aren't returning it right away.  Maybe Gruber told them that the taxpayers will be too stupid to notice it doesn't apply to businesses.  "Hey Joe Sixpack, I know you were looking forward to getting that cash back, but here's a big middle finger instead."

The silver lining is that perhaps it will motivate people to stop letting the government "borrow" their money.

[Ron]

It isn't that hard to adjust your allowances so that your refund is minimal.

More folks should do that.

[Scout26]

It's a hoax...  I  see it every year.  That's probably one thing that would bring out the torches and pitchforks.


http://www.forbes.com/sites/kellyphillipserb/2014/10/10/taxpayers-freaking-out-over-hoax-claiming-2015-irs-refunds-already-delayed/

[zxcvbob]

I've never heard of National Report, and the article doesn't cite any verifiable sources.  I'm skeptical.

[Boomhauer]

Yeah, I don't believe it.

Only if because the FSA would burn the cities if they didn't get their "refund" (nevermind the fact of how the hell can they legitimitely have a refund on taxes they never paid from the job they never had...)

[JN01]

It's a hoax...  I  see it every year.  That's probably one thing that would bring out the torches and pitchforks.


http://www.forbes.com/sites/kellyphillipserb/2014/10/10/taxpayers-freaking-out-over-hoax-claiming-2015-irs-refunds-already-delayed/

Crap!  I guess I was had.  I don't feel quite so stupid since a Forbes contributor bit on it as well. 

NEVER MIND 

[cassandra and sara's daddy]

I bit too when I first saw it. It's telling that our faith in gov is such that it is believeable


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[Ben]

I kinda wish it wasn't a hoax. It would be as close as we'd likely ever get to the "pay your taxes the day before election day" thing. The average American needs a good slap in the face to wake up to what the government is doing with our money.

When people have taxes deducted from their paycheck before they ever see the money, to most of them, it's like that money was never there. They consider their tax refund to be like getting a bonus at work. Were they to get their tax return showing they were going to get a check for "X" dollars, but not for six months, it might help them make the connection and maybe rile folks up a bit.

[brimic]

I kinda wish it wasn't a hoax. It would be as close as we'd likely ever get to the "pay your taxes the day before election day" thing. The average American needs a good slap in the face to wake up to what the government is doing with our money.

When people have taxes deducted from their paycheck before they ever see the money, to most of them, it's like that money was never there. They consider their tax refund to be like getting a bonus at work. Were they to get their tax return showing they were going to get a check for "X" dollars, but not for six months, it might help them make the connection and maybe rile folks up a bit.

No. Stop withholding altogether and make people pay their taxes on a quarterly basis. Same with union dues, FICA, etc..

[Ben]

No. Stop withholding altogether and make people pay their taxes on a quarterly basis. Same with union dues, FICA, etc..

Making everyone sit down and write a check so they know what govt costs is my theoretical ideal, but I also know how difficult it would be to actually collect the dough from at least 50% of the population. The whole payroll deduction revolves around the old lowest common denominator.