Businesses begin to feel effects of "Fiscal Cliff" inactivity
Wed, 23 Jan 2013 22:54:50 GMT —
The inactivity in Washington D.C. at the end of last year is cutting into the bottom line of some businesses.
Nearly a month ago, Congress came up with an agreement to avoid the fiscal cliff but because lawmakers came so close to the edge, their actions or inactions caused a setback in filing tax returns.
The Internal Revenue Service will not accept returns until January 30th this year. Last year, it was January 17th.
The tax return delay is causing a reduction in sales at businesses.
"Very few people have the cash to make down payments," car dealership owner Mike Addy said. "The desire is there it's the ability that we are looking for."
Addy's dealership is usually bumper to bumper with buyers during the early part of the year. But without the extra cash, it's put the brakes on the business.
"A lot of the money that comes into our industry the first of the year is tax income money. That being delayed has just postponed everything and pushed everything back."
And the car dealerships aren't the only ones feeling the lull of customers.
"Now is when you usually see an up kick because of the tax returns coming back and your not seeing that," furniture store owner Mark Bridgers said.
His store is usually a full house at this time, but most of his deals are going no where.
"When the tax returns hit, I'm sure we'll be aggressive in getting those people back into the store."
While both businessmen agree it's hurting revenue in the short term, they plan to make up the difference when income tax returns do start making their way to customers.
The last day for businesses to mail out W2 forms this year is January 31st.
April 15th is the final day to file your taxes.