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    Here are two child credits parents can take advantage of this tax season

    The cost to raise a child has become expensive for parents in the U.S.
    For instance, 47% of parents spent more than $1,500 a month on child care expenses in 2023.
    To help get a return on these costs, here are two tax credits parents can look into.

    Maskot | Maskot | Getty Images

    The cost to raise a child has become expensive for parents in the U.S. As tax season approaches, it’s smart to pay attention to tax breaks related to children and care expenses.
    Costs for child care have increased significantly due to inflation. Many child care centers also bumped their rates amid the so-called child care cliff of pandemic aid expiring.

    To that point, 47% of parents spent more than $1,500 a month on child care expenses in 2023, Care.com found. Meanwhile, 20% of parents shelled out at least $3,000 per month. The site polled 2,000 U.S. parents with children age 14 or younger.
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    “I have some clients that have three young kids in daycare and their daycare costs are like $5,000 a month,” said Sophia Bera Daigle, a certified financial planner and the founder of Gen Y Planning in Austin, Texas. She’s also a CNBC Financial Advisor Council member.
    Fortunately, there are two tax credits with different parameters that are meant to serve parents and help offset some of these costs.

    How the child tax credit works

    The child tax credit is meant to help families navigating the expense of raising a child.

    “The intent behind the child tax credit is to give parents a bit of a break,” said Ted Rossman, a senior industry analyst at Bankrate.
    The child tax credit was temporarily expanded during the Covid-19 pandemic, but expired at the end of 2021. Now, lawmakers are considering an $87 billion bipartisan tax agreement that could once again boost the child tax credit starting in 2023.
    The changes proposed earlier this week would retroactively boost the maximum refundable tax break to $1,800 per qualifying child for 2023, up from the current limit of $1,600. The limit would increase to $1,900 for tax year 2024, and $2,000 for tax year 2025, along with inflation adjustments.
    “The child tax credit is very broadly applied,” Rossman said.
    It’s “something that all parents can claim within the income thresholds,” he added. For 2023, the credit starts to phase out for those with an annual income of $200,000 or more, or $400,000 for married couples filing jointly.

    How the child and dependent care tax credit works

    The child and dependent care tax credit is meant to help working families offset the costs of care for kids under age 13 and adult dependents. It’s not just for daycare. Expenses such as summer day camp can qualify, too.
    “It’s not as generous as the child tax credit, but it still can be meaningful,” Rossman said.
    The credit is capped at eligible expenses of $3,000 for one qualifying child, or $6,000 for two or more. Depending on your income, the credit may be worth up to 35% of those expenses.
    However, there are a few limits, Daigle said.
    “It’s specifically for working single parents or dual-income, working spouses. If you have a stay-at-home parent … you cannot claim this credit,” she explained.
    Families who use a dependent-care flexible spending account to set aside pretax dollars for child care will also need to pay attention to those contributions. Expenses you paid for with FSA funds can’t be counted toward the tax credit.Don’t miss these stories from CNBC PRO: More

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    Egg prices are on the rise again. Here’s why

    Egg prices rose 8.9% from November to December, according to the consumer price index. The figure is adjusted for seasonal patterns.
    Highly pathogenic avian influenza, also known as bird flu, reemerged in U.S. commercial table-egg farms at the end of 2023 after a hiatus.
    Bird flu caused an egg shortage in 2022-23 that led prices to soar to record highs, economists said.

    A customer shops for eggs in a Kroger grocery store in Houston, Texas.
    Brandon Bell | Getty Images News | Getty Images

    Egg prices are on the rise again, after having fallen from record highs in 2023.
    Average egg prices jumped 8.9% from November to December, following a 2.2% rise the prior month, according to the consumer price index. The U.S. Department of Labor adjusts these numbers to account for seasonal patterns.

    December’s egg price move was the largest relative to other items in the CPI basket, which measures prices of everything from concert tickets to furniture, electricity and prescription drugs. For comparison, the overall CPI basket rose 0.3% during the month.

    Bird flu ‘pops back up again’

    Matthew Hatcher | Afp | Getty Images

    A dozen grade A, large eggs cost $2.51 in December, still well below last year’s peak at $4.82 in January 2023. At the time of that early 2023 high, prices had more than doubled in less than a year.
    That increase was largely due to a historic outbreak of highly pathogenic avian influenza, also known as bird flu, according to agricultural economists.
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    The virus is extremely contagious and lethal among birds, including egg-laying hens. The outbreak killed tens of millions of birds, contributing to an egg shortage that coincided with peak consumer demand heading into the winter holiday season, economists said.

    After having subsided for most of 2023, bird flu reappeared among commercial U.S. table-egg flocks in early November and has since been detected in several states, according to U.S. Department of Agriculture data.
    “Just when it seems that perhaps it’s behind us, it pops back up again … after a roughly 10-month hiatus,” said Karyn Rispoli, head of egg market coverage at Urner Barry, a market research firm.

    More than 14 million egg-laying chickens died in November and December due to avian flu, according to USDA data. There are more than 368 million egg-laying chickens in the U.S., the USDA said.
    That loss has caused wholesale prices to increase, though “not nearly to the same degree” as at the end of 2022 into 2023, Rispoli said.
    At the time, a farm group alleged that price gouging and profiteering among major egg suppliers also drove high prices in 2022, though some economists were skeptical that factor was at play.

    Strong consumer demand may also be a factor

    Some of the increase consumers saw in December was also likely attributable to the typical seasonal patterns of demand, which tends to spike around the winter holidays and therefore increases shelf prices, said Brian Moscogiuri, global trade strategist at Eggs Unlimited, an egg supplier.
    Prices have increased higher than most expected, however, though “nowhere near the shock markets” in 2022, Moscogiuri said.

    The extent to which bird flu may continue to spread and affect egg supply — and therefore prices — going forward is unclear, economists said.
    “It’s hard to predict when a virus is going to present itself and how impactful that could and will be,” said Amy Smith, vice president at Advanced Economic Solutions.Don’t miss these stories from CNBC PRO: More

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    For 2024, the quiet luxury trend is out and ‘loud budgeting’ is in — here’s how to make the most of it

    TikTok’s “loud budgeting” trend encourages consumers to take control of their finances and be vocal about making money-conscious decisions.
    Being open about your financial constraints and cutting down on impulse purchases can help reduce anxiety and achieve broader goals, experts say.

    Just months ago, we were coveting Loro Piana cashmere baseball hats and $300 Smythson notebooks in the name of “quiet luxury” and justifying such expensive purchases using “girl math.”
    But in 2024, there’s a new idea taking hold that overtly rejects the urge to overspend and promotes speaking up about saving money — welcome to the era of “loud budgeting.”

    What is loud budgeting?

    TikTok’s loud budgeting trend encourages consumers to take control of their finances and be vocal about making money-conscious decisions, rather than modeling purchase decisions after celebrities and their bottomless pockets — and financial experts love it.
    The idea making waves on social media is centered around the everyday person, or the “average Joe,” according to Lukas Battle’s viral TikTok video.
    “Let’s send a message to corporations about the national inflation level. Let’s take a stand,” Battle said.
    “It’s not ‘I don’t have enough,’ it’s ‘I don’t want to spend,'” Battle explained.
    In fact, the truly ultrarich are less interested in conspicuous consumption, he contends. In that way, loud budgeting is “it’s almost more chic, more stylish, more of a flex.”

    ‘Being loud can be empowering’

    “Being loud can be empowering,” said Erica Sandberg, personal finance expert at CardRates.com. “With this process, you become proud that you bring a bag lunch, make your own coffee, or take the bus.”
    Further, being open about your financial constraints can also help reduce anxiety and crowdsource solutions, she added.
    “Not only can consumers find commonality with budgeting concerns, they can also find community to achieve broader goals and cut down on impulse purchases,” Sandberg said.

    Aire Images | Moment | Getty Images

    Although a majority of all Americans say they are living paycheck to paycheck and feel increasingly strained by higher prices, consumers routinely spend more than they can afford on impulse purchases, many studies show — particularly on sites like TikTok, Instagram and Facebook.
    One report by online lender SoFi found that 56% of consumers said that more than half of their online purchases are spontaneous, driven largely by changing habits post-Covid and the surge in online shopping.
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    In fact, there are a growing number of catchy phrases, such as “bougie broke” and “de-influencing,” which aim to consciously stop overspending on social media and adhere to a realistic budget.
    “When opening Instagram and routinely seeing photos of that friend who travels to Europe every month, or near daily dinners in $100 per person downtown restaurants, it can become easy to feel that doing the opposite, putting more into savings for a single annual vacation, isn’t really ‘living,'” said Yuval Shuminer, CEO of budgeting app Piere.
    Yet, Battle is spot-on, Shuminer said.
    “Deprivation isn’t the goal or the outcome,” she said. “It’s the creation of a lifestyle that creates real individual value. It’s about spending money and allocating resources on what you prioritize in life, and cutting ruthlessly on what you don’t.”

    How to jump on the loud budgeting trend

    Quiet the noise altogether, consumer savings expert Andrea Woroch recently told CNBC.
    “The most simple way to dodge temptations is to get off the list by unsubscribing from emails, opting out of text alerts, turning off push notifications in retail apps and unfollowing brands on social,” she said.
    In addition, deleting payment details stored online helps create a “purchase hurdle” that forces you to think through your buying decisions, Woroch said.
    Otherwise, Jacqueline Howard, head of money wellness at Ally, recommends trying “the 48-hour rule,” which requires waiting a full two days before making a purchase, even if it’s on sale.
    “This small window of time allows you to calm your emotions from the urgency of the sale and helps you decide if you really want or need the item,” she said.
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    A 12% retirement return assumption is ‘absolutely nuts,’ expert says. Here’s a realistic rate to expect

    While a 12% annual rate of return has been suggested as possible in retirement investing, that’s not always achievable.
    Here’s why you may want to anticipate a more conservative return to account for life’s inevitable curveballs, according to experts.

    GlobalStock | Getty Images

    When you invest toward retirement, experts often like to say you are letting your money work for you. But how much can you realistically expect to earn on your money?
    The annual rate of return — defined as the percentage change in an investment’s value — is an estimate of the gains you may earn over time.

    Exactly how much you can expect to earn per year on average has been the subject of debate.
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    A 25-year-old who invests $100 per month in an S&P 500 index fund in a Roth individual retirement account until they are 65 may see a 12% annual rate of return over 40 years, personal finance expert Suze Orman recently told The Wall Street Journal in an interview. Dave Ramsey has long called for a 12% return estimate in his calculations.
    However, David Blanchett, managing director and head of retirement research at PGIM DC Solutions, is seeking to debunk the idea of 12% return assumptions. Among other reasons, that rate of return is “absolutely nuts” because it doesn’t incorporate volatility or inflation, Blanchett said.
    He said a more reasonable return assumption is 5% for a balanced portfolio of stocks and bonds or 7% for a more aggressive exposure to stocks.

    Return assumptions as a lesson on compounding

    The point of her example was not to expect a 12% average rate of return on your money, Orman told CNBC.com. Instead, it was intended to teach young investors what time and compounding can do, she said.
    “You have no idea how many kids have said to me, ‘When I heard that I immediately opened a Roth IRA, I immediately started to put money in it,'” Orman said.
    Young investors should start right now and should not wait, she said. The reason comes down to a concept called compound interest — that both the money you initially invest and the interest earned on that money will continue to grow.

    Those investors start to learn that — no matter the return — it’s better to start at age 25 versus 35, she said.
    “Every year that you wait, you have less time for your money to compound,” Orman said. “The less time you have for your money to compound, the less money you could have.”
    Moreover, investing through a post-tax Roth IRA account versus a pretax traditional retirement account may help boost your returns, as tax rates may increase in the future.
    Ramsey was not available for comment.

    Why 12% is an optimistic benchmark

    There’s a reason that 12% tends to be used as a benchmark, according to Blanchett. The average historical return from 1926 to 2023 is 12.2%, according to a monthly data set called stocks, bonds, bills and inflation, or SBBI.
    But that is based on a simple arithmetic return, which may not accurately reflect all fluctuations, according to Blanchett.
    For example, if you have $100 and your portfolio goes up 100%, you now have $200. But if it then goes down 50%, that brings you back to $100. The average return, by taking the 100% and negative 50% returns and dividing by two, would be positive 25%. Yet your realized return would be 0%, as you are back to your original $100 balance, Blanchett said.
    Another more complicated calculation used by experts, known as compounded or geometric returns, would better account for those fluctuations, he said.
    “It’s just the impact of negative returns that hurt you so much,” Blanchett said.

    How much retirement savers can expect to earn

    So how much can you realistically expect to earn on your retirement investments?
    “I would tell them 4% to 6%,” Orman said.
    The two different returns Orman cites serve different purposes, she said. The first example, with a 12% average rate of return, is to illustrate the power of compounding. The second is a lesson to anticipate a conservative return, “because you never know what can happen in life,” Orman said.
    Orman’s conservative estimate is in line with Blanchett’s 5%.
    Investors saving for retirement may see tools that provide return projections. However, it is important to be mindful of how those anticipated rates of return are determined.
    For example, Fidelity provides a balance projection for a NetBenefits accountholder’s next milestone age that anticipates a 3.5% return, among other assumptions. Because those time frames tend to be shorter, using historical returns is not necessarily the best strategy for those estimates, nor is it intended to be a long-term growth assumption, according to the firm.

    How your personal rate of return may vary

    Of course, no rates of return are guaranteed.
    Much of the rate you may anticipate earning on your investments depends on your personal asset allocation, said Brian Spinelli, a certified financial planner and co-chief investment officer at Halbert Hargrove Global Advisors in Long Beach, California, which was No. 8 on CNBC’s FA 100 list in 2023.
    Investors in workplace retirement accounts typically have a limited menu of options from which to choose. If they opt for greater exposure to bonds or stable value funds, they can expect more muted returns compared with someone who is more heavily invested in stocks, Spinelli said.

    The goal is to match those allocations to your time horizon, which typically means reducing the size of your stock investments the closer you get to your anticipated retirement date.
    Generally, investors should not have major asset allocation shifts from month to month, quarter to quarter or even year to year, according to Spinelli.
    It also helps to pay attention to the fees you may be charged on your investments, he noted. Fees eat into your returns.
    To stay the course, it helps to anticipate a certain amount of volatility from the outset, he said. By selling and sitting on the sidelines and waiting for the market to recover, you may miss the market’s best performance days.
    “In order to get those returns, you have to stay in it,” Spinelli said. “You cannot try to market-time and try to get out and expect yourself to get back in at the lows, because [you] probably won’t make that decision.” More

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    Biden administration to forgive $4.9 billion in student debt for 73,600 borrowers

    The Biden administration announced Friday it would forgive $4.9 billion in student debt for 73,600 borrowers.
    The relief is a result of the U.S. Department of Education’s fixes to its income-driven repayment plans and Public Service Loan Forgiveness program.

    US President Joe Biden speaks at Abbotts Creek Community Center during an event to promote his economic agenda in Raleigh, North Carolina, on January 18, 2024. 
    Saul Loeb | AFP | Getty Images

    The Biden administration announced Friday it would forgive $4.9 billion in student debt for 73,600 borrowers.
    The relief is a result of the U.S. Department of Education’s fixes to its income-driven repayment plans and Public Service Loan Forgiveness program.

    “The Biden-Harris Administration has worked relentlessly to fix our country’s broken student loan system and address the needless hurdles and administrative inaccuracies that, in the past, kept borrowers from getting the student debt forgiveness they deserved,” U.S. Secretary of Education Miguel Cardona said in a statement.
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    Around $1.7 billion of the aid will go to 29,700 borrowers enrolled in income-driven repayment plans. Those plans are supposed to lead to debt forgiveness after a set period, but historically, this hasn’t always happened because loan servicers failed to keep track of borrowers’ payments, experts say.
    In addition, 43,900 borrowers who have worked in public service for a decade or more will receive $3.2 billion in loan cancellation, the U.S. Department of Education said. Borrowers in the Public Service Loan Forgiveness program have also struggled to get the debt erasure they’ve been promised due to errors in their payment counts and other issues.
    The announcement did not specify when eligible borrowers may expect to see that relief.

    The Biden administration has now canceled more than $136 billion in student debt for over 3.7 million Americans, according to the White House.
    Consumer advocates have praised President Joe Biden for his recent actions but are pressuring him to do more.
    On the campaign trail ahead of the 2020 presidential election, Biden vowed to cancel at least $10,000 of student debt per person.
    “Student debt cancellation tipped the balance in Democrats’ favor in the midterms,” said Astra Taylor, co-founder of the Debt Collective, a union for debtors, in an interview last fall with CNBC. “Failing to deliver will demoralize and demobilize young people whose votes they cannot afford to lose.”
    Biden’s plans to cancel up to $400 billion in student debt for tens of millions of Americans were thwarted last June at the Supreme Court. The high court said the president didn’t have the authority to instruct his Education secretary to cancel such a large amount of consumer debt without prior authorization from Congress.
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    Tax identity theft ‘continues to be a huge problem,’ expert says. Here’s how to protect yourself

    Tax-related identity theft happens when criminals use your personal information to file a return in your name and claim your refund.
    Victims are waiting an average of almost 19 months for the IRS to process their returns and issue refunds, the National Taxpayer Advocate reported.

    5M3photos | Moment | Getty Images

    As the start of tax season approaches, experts are warning filers about tax-related identity theft, an issue that often halts returns and delays refunds.
    Tax identity theft happens when criminals use your personal information to file a return in your name and claim your refund — and “it continues to be a huge problem,” said Eva Velasquez, president and CEO of the Identity Theft Resource Center.

    The IRS’ Identity Theft Victim Assistance program had 294,138 individual case receipts during fiscal 2023, up from 92,631 in 2019, according to the National Taxpayer Advocate’s annual report to Congress released last week. 
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    Tax-related identity theft has diminished since the early days of electronic filing. But “the challenge is it takes so long to resolve,” Velasquez said.
    Indeed, victims are waiting an average of almost 19 months for the IRS to process their returns and issue refunds, National Taxpayer Advocate Erin Collins wrote in the organization’s report to Congress. She called the lengthy waits “unconscionable.”
    There are signs of tax identity theft listed on the IRS website, including a letter from the agency about a “suspicious tax return,” the inability to e-file, tax transcripts by mail you didn’t request and more.

    There are also two key steps taxpayers can take to protect themselves.

    File your tax return early

    One of the best ways to avoid tax-related identity theft this season is by filing your return early, according to Mark Steber, chief tax information officer at Jackson Hewitt.
    “There’s just too much downside risk in allowing the scammers and the stealers to come in and get in front of you by filing a faster return,” he said.

    There’s just too much downside risk in allowing the scammers and the stealers to come in and get in front of you by filing a faster return.

    Mark Steber
    Chief tax information officer at Jackson Hewitt

    Of course, it’s important to wait for the necessary tax forms to file a complete and accurate return. With missing information, the IRS may flag your filing, which could cause delays.
    As a year-round precaution, the IRS recommends protecting your data with strong passwords, multi-factor authentication, encryption programs and software updates.

    Get an identity protection pin for the future

    If you’re looking for added protection, experts suggest getting an identity protection PIN, or IP PIN, from the IRS.
    This six-digit number blocks others from using your Social Security number or individual taxpayer identification number to file a tax return. Once you enroll, the agency generates a new IP PIN for you each year.
    Previously, IP PINs were only for identity theft victims. “Now, they’ve opened it to everyone,” Steber said. “I highly recommend it.”
    However, he doesn’t recommend “last-minute adjustments” by trying to get an IP pin before filing your 2023 return. “If you file [your return] now, you do a lot more to protect your data and secure your personal information” than trying to get an IP pin in January, Steber added. More

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    Gen Z says they have it harder than their parents did — and the economy is to blame

    Most Gen Zers blame the economy for making it harder to get by, according to a recent report.
    Those just starting out are more likely to need a side hustle to help cover their monthly expenses.
    In the struggle to build wealth, young adults should not discount the advantage of time and the power of compound interest, experts say.

    Gen Zers are having a harder time making ends meet, let alone building wealth.
    Roughly 38% of Generation Z adults and millennials believe they face more difficulty feeling financially secure than their parents did at the same age, largely due to the economy, according to a recent Bankrate report. Gen Z is generally defined as those born between 1996 and 2012, including a cohort of teens and tweens.

    In the face of a higher cost of living, 53% of Gen Z workers also said they have a side hustle — more than any other generation — to help cover their monthly expenses, Bankrate found. Fewer are saving for the future.

    Parents need to realize that their kids are in trouble.

    Laurence Kotlikoff
    professor of economics at Boston University

    “This is a tougher climate, for sure,” said Laurence Kotlikoff, economics professor at Boston University and president of MaxiFi, which offers financial planning software. “Parents need to realize that their kids are in trouble.”

    Gen Zers face greater obstacles to financial success

    Inflation’s recent runup has indeed made it harder for those just starting out. More than half, or 53%, of Gen Zers say higher costs are a barrier to their financial success, according to a separate survey from Bank of America.
    In addition to soaring food and housing expenses, millennials and Gen Z face other financial challenges their parents did not as young adults. Not only are their wages lower than their parents’ earnings when they were in their 20s and 30s, but they are also carrying larger student loan balances.
    Roughly three-quarters of Gen Z Americans said today’s economy makes them hesitant to set up long-term financial goals and two-thirds said they might never have enough money to retire, another recent Prosperity Index study by Intuit found. 

    Young adults also have the advantage of time

    “Younger Americans haven’t had it easy in this economy, but any step they take toward strengthening the building blocks of their finances will pay off over time,” said Sarah Foster, analyst at Bankrate.
    Gen Zers have the significant advantage of those extra years when it comes to saving for long-term goals such as retirement, she added.
    “Prioritize investing in yourself, paying down debt and reaping the benefits of compound interest by saving for both the short and long term,” Foster advised.
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    The earlier you start, the more you will benefit from compound interest, whereby the money you earn gets reinvested and earns even more.
    There are no magic bullets, Matt Schulz, LendingTree’s chief credit analyst, recently told CNBC — but there are a few financial habits that pay off. “Most things around saving aren’t super complicated but it doesn’t mean they’re easy to do,” he said.
    “Just like having a healthy lifestyle, it’s just about doing the right things over and over again over time and having patience.”
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    Government shutdown could disrupt upcoming tax season, IRS commissioner says

    Lawmakers are racing to avert a government shutdown, which could affect the upcoming tax season, IRS Commissioner Danny Werfel said last week. 
    By law, the agency can preserve certain activities for ongoing operations after a lapse in funding.
    But it’s unclear exactly which areas of taxpayer service would be affected, experts say.

    Internal Revenue Commissioner Danny Werfel speaks during his swearing in ceremony at the IRS on April 4, 2023 in Washington, DC. (Photo by Bonnie Cash/Getty Images)
    Bonnie Cash | Getty Images News | Getty Images

    As Americans prepare for the opening of tax season, lawmakers are racing to avert a government shutdown. If they fail to come to an agreement, the resulting pause in nonessential operations could affect taxpayers’ filing experience, according to IRS Commissioner Danny Werfel. 
    By law, the agency can preserve certain activities for ongoing operations after a lapse in funding, Werfel told reporters last week. But “shutdowns are highly disruptive,” he said, noting it could “increase the risk that we don’t have as smooth a filing season as we intend to have.”

    Congress faces two looming deadlines, Jan. 19 and Feb. 2, to finalize a deal or pass a short-term funding measure. It’s the second deadline that affects the IRS.
    While lawmakers have taken steps to extend both deadlines to early March, the new dates would still leave limited working days to reach a deal.
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    “We experienced shutdowns before,” Werfel said. “We have not experienced a shutdown in the middle of filing season, so there’s some uncertainty there.” 
    “Of course, we will do everything in our power to minimize the disruptions that a shutdown would have on the filing season,” he added. 

    Some tax preparers have already begun accepting 2023 returns, but the season officially kicks off on Jan. 29 when the IRS starts processing filings.

    What may happen at the IRS during a shutdown

    While certain IRS functions would continue under a federal government shutdown, it’s unclear exactly which employees would keep working, experts say.
    The U.S. Department of the Treasury in September released a lapsed appropriations contingency plan for fiscal 2024, covering critical operations for the IRS.

    However, the American Institute of CPAs in November sent a letter to Treasury Secretary Janet Yellen and Commissioner Werfel, asking for plan updates with “filing season-specific activities.”
    “There’s not a lot of winners if the IRS shuts down and has to go to their contingency plan,” said Kasey Pittman, tax policy director with Baker Tilly’s Washington tax council. 
    The AICPA’s letter expressed concerns about phone service, taxpayer assistance centers, possible refund delays, paper correspondence and automated notices, pointing to an interpretation of the contingency plan from the National Taxpayer Advocate.

    Shutdown could affect IRS priorities

    If lawmakers don’t finalize a deal, or pass a short-term funding measure, it could threaten the agency’s progress on past issues and new initiatives, according to Mark Everson, a former IRS commissioner and current vice chairman at Alliantgroup.
    “It’s not just a regular filing season,” he said, pointing to challenges like the employee retention tax credit backlogs and the upcoming Direct File pilot program, which will allow certain taxpayers to file directly with the IRS for free. 
    Meanwhile, the IRS faces mounting pressure to continue improving service after an infusion of funding and efforts from some Republican lawmakers to rescind it.
    There’s an “incredibly long list of things that they’re after,” Everson said. “They certainly don’t need that kind of disruption.” 
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