The IRS announced that it will not be able to start to process any tax filings until January 30, 2013. The IRS stated that there are about 30 forms that it will not be able to process until late February or early March, including any form with depreciation.
Once the IRS releases the new forms, then the tax preparation software companies will need time to program their software which can take a couple of weeks. After the software is re-programmed, then the IRS and states need to approve the software programs for compliance.
If you are applying to FAFSA for college financial aid and you need to file your financial information by January 31, you now have the above roadblocks to consider.
If you are seeking a quick refund from the IRS, you will also be disappointed. The IRS announced that because of its more extensive processing of refund returns, the average time for refunds will be 15-20 days, rather than the former shorter time frames of 7-10 days.
We have been asked if the IRS will extend the due date of April 15 because of Congress’s actions (or failures to act). We believe that is highly unlikely. Taxpayers can file for an automatic 6-month extension of time to file. Two caveats need to be addressed. First, the IRS has announced that tax preparers cannot automatically file an extension of time to file tax returns for a taxpayer. The taxpayer must request that an extension of time be filed by the tax preparer. The tax preparer will likely require that this request be made in writing to avoid possible IRS sanctions. Second, while the IRS (and all other tax jurisdictions) provide for an extension of time to file, any 2012 tax liability must be paid by April 15, 2013 to avoid interest and penalty assessments for failure to timely pay.
Please be sure to read the disclaimer page on our blog. This blog is for educational purposes only and should not be considered as the rendering of tax advice.
