Delay #1 - Congress - Congress passed 2012 tax bill after 1 January which has caused a delay in tax filing season. Taxpayers can start filing their tax return 30 Jan 2013 this means that tax refund checks will be delayed till mid to late February.
Delay #2 - IRS announced they had identified over 28.5 Billion in tax fraud last tax season and most of that fraud is from Earned Income Tax Credit. IRS has recognized that many tax returns that are filed early in the tax season contain Earned Income Tax Credit. So per IRS they are expecting to delay tax return with EITC for 30 to 75 days. It appears that the two top items that IRS is looking for is
-Claiming children with a relationship other than your son or daughter.
-Single males claiming children.
The IRS recognized both of these types of family / home situations as abnormal family units for our society and they have found large amount of fraud in this area.
Delay #3 - IRS had identified several tax forms that are on extended delay because of Congress late passing of tax law. Extended delay means you cannot file these form till 1 March, the forms that affect most people are
-College Student or their parents who are claiming college tax credits
-Home Energy Credit
-Depreciation form 4562, affecting business owners, farmer, landlords
At Stadler & Company we appreciate your business and strive hard to ensure that we keep you informed on tax policy that affects you. As always, dont hesitate to call, email or stop by if you have any questions. Be sure to hire American Elite Tax Experts - Enrolled Agents.
The first known written record of taxes dates back to ancient Egypt when grain, livestock or oils were used instead of money to pay what was owed to the government. Even then, the surviving hieroglyphic tablets records how people complained about high taxes. Some things never change.