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Taxpayers May See IRS Delays for 2014 Filing Season

November 11, 2014  |   Tax News   |   Tags: , ,  

2015 may bring some unusual activity for taxpayers nationwide, as the IRS has warned that the entire filing season may be delayed. IRS Commissioner John Koshiken has advised Congressional leaders that unless certain “tax extenders” are renewed, return season might have to be postponed. Koshiken cautions that without meeting the approval deadline approaching this month, tax season impediments may be unavoidable.
tax assistanceThe filing delays will lead to lags in return processing and tax refunds, providing massive setbacks to both the Internal Revenue Service and taxpayers across the country. There are over 50 tax extenders in question, which represent a variety of provisions designed to help reduce taxpayers’ liabilities. These provisions require congressional approval in order to continue into 2015 and beyond.

This issue affects Americans not only because of the delays, but because of what the provisions mean for everyone. Individuals relying on provisions for local and state tax deductions, education tax deductions and mortgage tax relief will be impacted. Businesses provision renewals that are under consideration include tax incentives endorsing renewable energy, the credit for research and development costs, the work opportunity tax credit, and 50% bonus depreciation.

Although the tax extenders are largely favored by Republicans and Democrats alike, stalled approval has been an IRS concern for over a month. Koshiken outlined potential issues in a letter to the Senate Finance Committee in October. He encouraged provision renewals following the Congressional return this month.

In addition to the tax extenders, the IRS has been contending with budgetary freeze and the ever-increasing workload. Koshiken has made it clear that these financial roadblocks will lead to cuts in IRS/taxpayer services. With the introduction of Affordable Care Act provisions and obligations to the Foreign Account Tax Compliance Act, there is a concern that the IRS will be able to answer only half of citizens’ calls come tax season. At the very least, there will be a strong chance that taxpayers will see processing delays and longer waits for their refunds.