How Are Late Law Changes Affecting 2012 Tax Return Preparation?

According to a recent article in Deseret News, 2012 tax return preparation has been causing headaches for those individuals filing tax returns because of late law changes that occurred at the beginning of the year. Taxpayers and tax preparers have been receiving notices stating that their returns were rejected after filing them electronically. Unfortunately, the rejection of their 2012 tax return is not something neither taxpayers nor tax preparers have the ability to control.

The approval of the American Taxpayer Relief Act on the second day of the year by Congress necessitated changes to forms that many taxpayers use when filing their 2012 tax returns. Because the changes had to be made so quickly before tax season began, it seems the IRS has not yet completed all required changes its form database.

The article gives the perspective of a local accountant who reported seeing a screen that says, “This return cannot be filed electronically” when he attempted to submit some of the many returns being filed.

The changes in tax law have required around 30 forms to be corrected. With such a significant amount of forms to be changed, the IRS was unable to complete all reprogramming required, despite the delayed start of the tax season.

It is unclear how many individuals will be affected by the issue. According to the accountant, the forms that have not yet been completed deal primarily with businesses, but individual taxpayers can also be affected.

If you have any questions regarding the changes to tax law, the best thing you can do is contact your knowledgeable tax professional.

Segal, Cohen & Landis
9100 Wilshire Blvd. Ste. 601E
Beverly Hills, CA 90212
(310) 285-3999

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