IRS Startup Delay

The IRS will begin processing individual tax returns for 2012 on January 30th. The delay in the IRS start is due to the “fiscal cliff” legislation signed into law on January 2nd, requiring changes to tax processing. Some parts of the law reinstated credits retroactively to the January 1, 2012.

The vast majority of taxpayers, more than 120 million, will be able to file on January 30th, whether they file electronically or via paper. The IRS will be ready to process returns affected by some of the new legislation, specifically those returns which are affected by the AMT patch or which claim sales tax deduction, educator deduction, or higher tuition and fees deductions.

However, if the tax return requires some special forms, the taxpayer will not be able to file until late February or early March. The IRS needs additional time to change and test their processes. Key among these forms is the Residential Energy Credit, Depreciation and Amortization, and the General Business Credit. A complete list of the forms impacted can be found at the IRS website. The IRS will announce specific dates for the forms availability.

Regardless of when you file, it is advantageous to file electronically and to have any refund direct deposited.


IRS Circular 230 Disclosure

Pursuant to U.S. Treasury Department Regulations, we are now required to advise you that any federal tax advice contained in this communication, including attachments and enclosures, is not intended by the Sender or Sandra G Johnson, CPA, P.C. to constitute a covered opinion pursuant to regulation section 10.35 or to be used for the purpose of (i) avoiding tax-related penalties under Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any tax-related matters addressed herein.