Tag Archives: Tax season

2014 Tax Season to Start Late Following Government Closure

October 22, 2013

WASHINGTON–The Internal Revenue Service today announced a delay of approximately one to two weeks to the start of the 2014 filing season to allow adequate time to program and test tax processing systems following the 16-day federal government closure.

The IRS is exploring options to shorten the expected delay and will announce a final decision on the start of the 2014 filing season in December, Acting IRS Commissioner Danny Werfel said. The original start date of the 2014 filing season was Jan. 21, and with a one- to two-week delay, the IRS would start accepting and processing 2013 individual tax returns no earlier than Jan. 28 and no later than Feb. 4.

The government closure came during the peak period for preparing IRS systems for the 2014 filing season. Programming, testing and deployment of more than 50 IRS systems is needed to handle processing of nearly 150 million tax returns. Updating these core systems is a complex, year-round process with the majority of the work beginning in the fall of each year.

About 90 percent of IRS operations were closed during the shutdown, with some major workstreams closed entirely during this period, putting the IRS nearly three weeks behind its tight timetable for being ready to start the 2014 filing season. There are additional training, programming and testing demands on IRS systems this year in order to provide additional refund fraud and identity theft detection and prevention.

“Readying our systems to handle the tax season is an intricate, detailed process, and we must take the time to get it right,” Werfel said. “The adjustment to the start of the filing season provides us the necessary time to program, test and validate our systems so that we can provide a smooth filing and refund process for the nation’s taxpayers. We want the public and tax professionals to know about the delay well in advance so they can prepare for a later start of the filing season.”

The IRS will not process paper tax returns before the start date, which will be announced in December. There is no advantage to filing on paper before the opening date, and taxpayers will receive their tax refunds much faster by using e-file with direct deposit. The April 15 tax deadline is set by statute and will remain in place. However, the IRS reminds taxpayers that anyone can request an automatic six-month extension to file their tax return. The request is easily done with Form 4868, which can be filed electronically or on paper.

IRS processes, applications and databases must be updated annually to reflect tax law updates, business process changes, and programming updates in time for the start of the filing season.

The IRS continues resuming and assessing operations following the 16-day closure. The IRS is seeing heavy demand on its toll-free telephone lines, walk-in sites and other services from taxpayers and tax practitioners.

During the closure, the IRS received 400,000 pieces of correspondence, on top of the 1 million items already being processed before the shutdown.

The IRS encourages taxpayers to wait to call or visit if their issue is not urgent, and to continue to use automated applications on IRS.gov whenever possible.

“In the days ahead, we will continue assessing the impact of the shutdown on IRS operations, and we will do everything we can to work through the backlog and pent-up demand,” Werfel said. “We greatly appreciate the patience of taxpayers and the tax professional community during this period.”

Tax On Wheels, LLC is available to assist you with tax questions or concerns 365 days a year.  You can reach us at 803 732-4288.

IRS says delayed tax forms scheduled to be approved and accepted for processing March 3, 2013

The IRS has notified the industry that most of the remaining tax forms delayed because of the late approval of legislation will be approved for electronic filing and processed beginning Sunday March 3, 2013.  We expect the kinks to be worked out and the system to be rocking and rolling by Monday March 4, 2013.

Those of you who have already completed the tax preparation process and are simply waiting for the approval of some specific form to enable filing of your tax return, please be patient with us as we work through the backlog.  We understand the importance of getting your refund as soon as possible and we will be diligent in getting all returns submitted to the IRS.

IRS To Accept Tax Returns with Education Credits, Depreciation Next Week

Its official.

WASHINGTON — The Internal Revenue Service announced today that taxpayers will be able to start filing two major tax forms next week covering education credits and depreciation.

Starting Sunday, Feb. 10, the IRS will start processing tax returns that contain Form 4562, Depreciation and Amortization. And on Thursday, Feb. 14, the IRS plans to start processing Form 8863, Education Credits.

This step clears the way for almost all taxpayers to start filing their tax returns for 2012. These forms affected the largest groups of taxpayers who weren’t able to file following the Jan. 30 opening of the 2013 tax season.

The IRS will be able to accept the education credits and depreciation forms following the completion of reprogramming and testing of its systems.  Work continues on preparing IRS systems to accept the remaining tax forms affected by the American Taxpayer Relief Act (ATRA) enacted by Congress on Jan. 2.

The IRS also announced today it will start accepting the remaining forms affected by the January legislation the first week of March.  A specific date will be announced later. Most of those in this group file more complex tax returns and typically file closer to the deadline or obtain an extension. A full list of the forms that will be accepted the first week of March is available on IRS.gov.

Next week’s opening covers two groups of taxpayers using:

  • Form 8863, Education Credits. Form 8863 is used to claim two higher education credits — the American Opportunity Tax Credit and the Lifetime Learning Credit.
  • Form 4562, Depreciation and Amortization. Most of the people using the depreciation form tend to file later in the tax season or obtain a six-month extension. Non-1040 business filers using Form 4562 can also file starting Sunday.

Tax On Wheels, LLC is ready to assist you with your delayed return, just give us a call at 803 732-4288.

IRS to lift delay of certain tax returns

We just received the following flash alert.

Effective 9:00 am Eastern time on Sunday, February 10, 2013, the IRS will start processing 2012 returns that contain Form 4562, Depreciation and Amortization. This will include the Form 1040-family tax returns, Form 1065/1065-B, Form 1120-family tax returns and Form 990-family tax returns.

On Thursday, February 14, 2013, the IRS plans to start processing 2012 returns that contain Form 8863, Education Credits.

This will undoubtedly make many of you really happy.  If your return has been delayed because you have one of these delayed forms on your return your wait is almost over.  Contact Tax On Wheels, LLC at 803 732-4288 to proceed with the processing of your return.

Comprehensive Summary of The American Taxpayer Relief Act of 2012: A Fiscal Cliffhanger

At the beginning of the year we offered a quick summary of The American Taxpayer Relief Act of 2012.  We hope you found it useful even though it was designed as a superficial quick read of the highlights.

For anyone who is interested in more specific details of the Act, I am pleased to announce that a new more comprehensive summary is now available for our clients and friends.  Just as it was with the first summary, we are prohibited by contractual obligations from posting the summary on this blog, however we are able to share this new 10 page summary by email with anyone who requests a copy.  Simply send an email to:

milton.cooley@ceterafs.com

and we will be happy to share.  Or, you may call us directly at 877-439-3514.  Be sure to provide us with your contact information, including your email address and you will be added to our weekly mail out which includes the Summary of The American Taxpayer Relief Act of 2012.

IRS Kicks Off 2013 Tax Season; Most Individual Returns Can Be Filed Now

WASHINGTON — The Internal Revenue Service today opened the 2013 filing season by announcing a variety of enhanced products and services to help taxpayers prepare and file their tax returns by the April 15 deadline.

New and expanded services for taxpayers this year include a redesigned IRS.gov web site that’s easier to navigate and improved service options, including more video-conferencing assistance sites and additional social media tools. In addition, the IRS has stepped up its enforcement efforts to protect taxpayers from refund fraud and identity theft.

The IRS began accepting and processing most individual tax returns today after updating forms and completing programming and testing of its processing systems to reflect the American Taxpayer Relief Act (ATRA) that Congress enacted on Jan. 2. The vast majority of taxpayers can file now, but the IRS is continuing to update its systems for some tax filers. The IRS will begin accepting tax returns from people claiming education credits in mid-February while taxpayers claiming depreciation deductions, energy credits and many business credits will be able to file in late February or early March. A full list of the affected forms is available on IRS.gov.

This year, taxpayers have until Monday, April 15, to file their 2012 tax returns and pay any tax due. The IRS expects to receive more than 147 million individual tax returns this year, with about 75 percent projected to receive a refund.

Last year for the first time, 80 percent of all individual returns were filed electronically. E-file, when combined with direct deposit, is the fastest way to get a refund. Last year, about three out of four refund filers selected direct deposit.

If you need assistance filing your tax return or if you just have questions about filing you may call Tax On Wheels, LLC at 803 732-4288

Like mushrooms after a spring rain

On Friday January 18, 2013, the US District Court for the district of Columbia, struck down the position that the IRS has the authority to regulate tax preparers.

What this apparently means is that the IRS will not be able to regulate practice before the IRS by so called unenrolled preparers (anyone who is not a CPA, Enrolled Agent or Attorney).   Unless the IRS appeals the decision and prevails or finds some alternative method of regulating the preparation of tax returns we should probably prepare ourselves for the return of the crooks.

It hasn’t been that long ago that we had the proliferation of fly by night tax return places popping up like mushrooms after a spring rain anywhere a sufficient quantity suckers could be found.  When tax season was over they were gone and any problems were the sole responsibility of the tax payer who was left holding the bag.

Many of us in the tax preparation industry had hoped that this industry could be infused with more professionalism and we were glad to see the IRS implementing the fairly limited requirements upon anyone who held themselves out to be tax preparers.  Everyone here at Tax On Wheels, LLC  still hopes the IRS will be able to bring some order and sanity to this process.  But in the mean time the public should probably be prepared for any idiot who can get their hands on a copy of TurboTax  to set up shop in a strip mall near you.  Let the buyer beware!

You may contact Tax On Wheels, LLC at 803 732-4288 if you have questions about this post.

IRS Plans Jan. 30 Tax Season Opening For 1040 Filers

WASHINGTON — Following the January tax law changes made by Congress under the American Taxpayer Relief Act (ATRA), the Internal Revenue Service announced today it plans to open the 2013 filing season and begin processing individual income tax returns on Jan. 30.

The IRS will begin accepting tax returns on that date after updating forms and completing programming and testing of its processing systems. This will reflect the bulk of the late tax law changes enacted Jan. 2. The announcement means that the vast majority of tax filers — more than 120 million households — should be able to start filing tax returns starting Jan 30.

The IRS estimates that remaining households will be able to start filing in late February or into March because of the need for more extensive form and processing systems changes. This group includes people claiming residential energy credits, depreciation of property or general business credits. Most of those in this group file more complex tax returns and typically file closer to the April 15 deadline or obtain an extension.

“We have worked hard to open tax season as soon as possible,” IRS Acting Commissioner Steven T. Miller said. “This date ensures we have the time we need to update and test our processing systems.”

The IRS will not process paper tax returns before the anticipated Jan. 30 opening date. There is no advantage to filing on paper before the opening date, and taxpayers will receive their tax refunds much faster by using e-file with direct deposit.

“The best option for taxpayers is to file electronically,” Miller said.

The opening of the filing season follows passage by Congress of an extensive set of tax changes in ATRA on Jan. 1, 2013, with many affecting tax returns for 2012. ‬While the IRS worked to anticipate the late tax law changes as much as possible, the final law required that the IRS update forms and instructions as well as make critical processing system adjustments before it can begin accepting tax returns.

The IRS originally planned to open electronic filing this year on Jan. 22; more than 80 percent of taxpayers filed electronically last year.

Who Can File Starting Jan. 30?

The IRS anticipates that the vast majority of all taxpayers can file starting Jan. 30, regardless of whether they file electronically or on paper. The IRS will be able to accept tax returns affected by the late Alternative Minimum Tax (AMT) patch as well as the three major “extender” provisions for people claiming the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction.

Who Can’t File Until Later?

There are several forms affected by the late legislation that require more extensive programming and testing of IRS systems. The IRS hopes to begin accepting tax returns including these tax forms between late February and into March; a specific date will be announced in the near future.

The key forms that require more extensive programming changes include Form 5695 (Residential Energy Credits), Form 4562 (Depreciation and Amortization) and Form 3800 (General Business Credit). A full listing of the forms that won’t be accepted until later is available on IRS.gov.

As part of this effort, the IRS will be working closely with the tax software industry and tax professional community to minimize delays and ensure as smooth a tax season as possible under the circumstances.

If you have questions about how the delayed filing season affects please contact Tax On Wheels, LLC at 803 732-4288.

Summary of The American Taxpayer Relief Act of 2012

The American Taxpayer Relief Act of 2012 was recently signed into law.  This law will have a significant impact on nearly every American taxpayer.  We will be publishing, for our Investment Advisory clients, a summary of key provisions of the law including how the law will impact many taxpayers.

Due to contractual obligations we cannot publish the summary here on this blog. However, we are allowed to email a copies of the summary to anyone who wishes to receive it.

If you would like to receive your very own copy of the tax law summary please send an email to

milton.cooley@ceterafs.com

and request to be added to our weekly email list (you may unsubscribe at anytime with one click but we think you will want to hang around to receive all the timely information provided).

As always, please contact Tax On Wheels, LLC at 803 732-4288 if you have any questions or concerns.

Expect delays this tax filing season due to The American Taxpayer Relief Act of 2012

The congress has passed and the President has signed into law The American Taxpayer relief act of 2012.  This bill is over 150 pages and retroactively extends many provisions that were slated to expire  The law also permanently patches the AMT (alternative minimum tax).  The permanent patching of the AMT is alone worth any inconvenience we may endure this year.

The IRS is reviewing the details of the legislation and assessing the impact it will have on the tax filing season.  We expect that the IRS will soon make some pronouncement regarding  when taxpayers can begin filing tax returns.  The tax e-filing season is scheduled to begin January 22, 2012, however, due to this last minute legislation just signed into law we anticipate that there will be some delay processing most if not all tax returns this year.

At this point many common tax forms have not been released by the IRS.  We would not be surprised to find that processing for many of these forms has been delayed for a number of weeks, similar to the delays back in 2011 when late breaking legislation caused certain taxpayers to have to wait until February to file.

As a general rule, we encourage our clients to let other taxpayers be the first guinea pigs through the tax system to avoid software programming and processing issues.  This year will be no different.

Tax On Wheels, LLC has installed our tax software for this year but it is not yet ready for production.  We expect our tax software will be stable in another week or so, January 10, 2013.  At that point we will begin taking appointments for fairly simple returns.  Those with more complicated returns should probably wait until at least the end of January to schedule appointments.  Remember, however, that even if we complete your appointment we may not be able to process your tax return until the IRS authorizes processing for all of the forms needed for your return.

Bottom line, expect delays this tax season.

Please feel free to contact Tax On Wheels, LLC at 803 732-4288 if you have questions or concerns about the coming tax season.