The IRS will begin to process returns on January 30, eight days later than it had originally planned. The delay is a result of changes in tax laws that were made in the fiscal cliff deal.
Although the tax-filing season may be behind schedule, there is no leeway when it comes to the taxpayer’s deadline. The taxman will still come on April 15.
Among the changes that are delaying the ability of the IRS to process returns are the higher tax rates on household income above $450,000 and an adjustment for inflation for the alternative minimum tax.
For those who are anxious to receive their refunds, a little patience will be required. While the IRS has stated that the agency has worked hard to open the coming tax season as quickly as possible, the delayed processing date will allow the IRS to update its systems and test their functionality to ensure a smooth transition.
The end of last year marked the expiration of the George W. Bush tax cuts. As Congress scrambled to come to a consensus, the IRS did so as well, as many of the issues would affect the coming tax season.
In a letter more extensively discussed in a previous blog post, the IRS’ interim commissioner wrote a letter to lawmakers as a reminder of the tremendous issues that would occur if the necessary adjustments to the alternative minimum tax were not addressed.
A deal was reached though, and the issues were resolved.
If you, as a taxpayer, are impatient for your return, the IRS strongly urges you to file electronically and request direct deposit of your refund.
If you have any questions about the filing process, or any other issue that you may encounter in regards to taxes, please contact your knowledgeable tax professional.
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