Written by Mike Harter, CPA/PFS, CFP®
The 13th hour tax decisions by Congress is impacting taxpayer’s wallets in more ways than a reduction in their take home pay. The IRS now must go back and retool tax forms and software to handle the new rules. This then has to go to the tax software companies and then to tax preparers before any returns can be filed by paid preparers. IRS is not accepting any tax returns prior to January 30th. Some forms will not be approved until mid-February and into March.
Education credits (Form 8863) will be processed in mid-February. Common forms such as General Business Credits (Form 3800), Depreciation & Amortization (Form 4562) and Passive Activities (Form 8582) also join the February/March list.
In addition, direct deposit refunds which have typically taken 7 to 10 days will now be closer to 21 days as the Service is implementing new procedures in an attempt to stop fraudulent refunds from being processed. Many taxpayers rely on early tax refunds to pay bills.
So, patience will be at a premium this tax filing season! Remember – Don’t kill the messenger!