If you were hoping to get your taxes done early, you might need to wait a few more days. Due to the tax code changes presented by the fiscal cliff deal, the IRS has pushed back the start date for 2012 tax returns until Jan. 30 — eight days later than the usual start date.
The IRS announced that it won’t start processing those returns until Valentine’s Day.
It’s one of the first concrete changes the general public has seen since President Barack Obama and the U.S. Congress inked a deal to stop the government from plummeting over the fiscal cliff. Since the new terms went into place on Jan. 2, the IRS has been scrambling to get all of the tax code and programs in place before returns can be processed.
Business tax returns can be processed immediately, particularly if you’re filing a return with a year ending prior to Dec. 31, 2012, or all 2011 tax year and 2012 fiscal year business returns, including the Form 1120 series. Larger businesses should have no problem completing their taxes. However, those who are self employed or landlords may need to cool their heels: Form 4562 (Depreciation and Amortization) and Form 3800 (General Business Credit) are being rewritten and processed and likely won’t be ready until as late as March before they’re ready for taxpayers to fill out and submit.
Because of the changes, the IRS is urging taxpayers to file electronically online or use a tax prep program that updates automatically with the latest tax code. In a statement made on the IRS website, IRS Acting Commissioner Steven T. Miller says “We have worked hard to open tax season as soon as possible. . . . The best option for taxpayers is to file electronically.”
The statement also noted that paper returns filed before the new processing date will not be processed earlier and that taxpayers will receive their refunds much more quickly by going the electronic route.
It’s the first in a long line of changes that Americans will see as a consequence of the fiscal cliff. First, the IRS delays 2012 tax returns, followed by the expiration of the Social Security tax cut and less take-home pay.
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