Tax Refund Delay
The fiscal cliff has been the talk of the news for the last part of 2012. The nation did not go over the fiscal cliff, however due to the delays tax refund information is uncertain. Congress’ tardy action on the fiscal cliff tax provisions has caused problems for the Internal Revenue Service.
The Internal Revenue Service now has to program its system and issue tax forms based on the revised laws. The IRS has not announced when taxpayers can start filing their 2012 returns, which means refunds will probably be late. Filing usually begins in mid-January.
“The IRS is currently reviewing the details of this week’s tax legislation and assessing what impact it will have on this year’s filing season,” said the agency, adding it will issue additional guidance “soon.”
This year may be even more problematic since Congress did not act until New Year’s Day. The IRS has already published Form 1040 for 2012, but many lines are listed as “reserved.” The reserved lines are “placeholder’s” for several fiscal cliff provisions, said an IRS agency spokesperson. The IRS still has to put together an instruction booklet for filing out the tax forms. This is causing tax preparers to wait for further instruction.
This is not the first time the IRS has had to deal with such a delay. Two years ago, it took until mid-December for President Obama and lawmakers to reach an agreement on similar problems. In this case tax season was delayed until mid-February. That particular year 9 million taxpayers were affected.
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