The recent tax law changes resulting from the Fiscal Cliff have prompted the IRS to open tax season eight days later than usual, to make necessary adjustments. The IRS is set to begin processing returns on January 30, and will not go through any files before that date.
Part of the reason why the date has been pushed back has to do with programming the IRS computers and changing forms and instructions. The IRS stated they need time to update and test the new systems, making sure that the data is correct.
The delay in tax refunds might be harmful for lower-income families who are struggling to make ends meet. Other people with more complicated tax issues are directed to file in late February or March in order for the IRS to fully implement the Fiscal Cliff changes. Some of the groups with delayed tax returns have to do with tax credits, such as electric or hybrid vehicle owners, business-related issues, or property credits.
Since 2001 there has been approximately 5,000 changes to the United States tax code, and the rate of people who use tax professionals or software to file has grown exponentially. People are becoming especially worrisome about the future of the American tax system and fear another recession.
Although the tax filing date has changed, and there will be delays for pay outs, due date to file will remain the same, April 15. So make sure to get your taxes taken care of before the date to avoid being penalized.