From Carol McAtee’s CPA firm in St. Petersburg, FL – Beginning on February 14, the Internal Revenue Service plans to start processing tax returns delayed by last month’s tax law changes. However, taxpayers affected by the delay can begin preparing their tax returns immediately because many software providers are ready now to accept these returns. Additionally, the IRS reminds that many taxpayers are not affected by the delay and can file their tax returns as soon as possible.
The IRS will start processing both paper and e-filed returns affected by the delay on February 14. Tax returns impacted by the new tax laws and delayed processing include those claiming itemized deductions on Schedule A, the higher education tuition and fees deduction on Form 8917 and the educator expenses deduction.
Most other returns, including those claiming the Earned Income Tax Credit (EITC), education tax credits, child tax credit and other popular tax breaks, can be filed as normal.
As tax professionals, McAtee & Associates can help both e-filers and paper filer get a head start on their tax preparation. Contact us now, because our tax preparation software will allow us to prepare your return immediately. If necessary, we will hold onto the return and electronically e-file it after the IRS system opens on February 14 for processing the delayed forms.
The IRS needed the extra time to update its systems to accommodate the tax law changes without disrupting other operations tied to the filing season. The delay followed the December 17 enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which extended a number of expiring provisions including the state and local sales tax deduction, higher education tuition and fees deduction, and educator expenses deduction.
ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.
