Americans may have to wait a little bit longer for their refunds during the much dreaded tax season next year, warns the Internal Revenue Service Commissioner John Koskinen, who cited a couple of reasons.
First, the tax-collecting agency is waiting for lawmakers to act on expired tax provisions, otherwise known as extenders. The IRS warned that if Congress doesn’t act before the end of November then this could delay tax season.
If Congress fails to act accordingly then dozens of tax breaks worth close to $85 billion will not be available to the taxpayers next year.
Second, the IRS is undergoing a long process of upgrading its systems and equipment to eventually assist in the tax filing process.
“Continued uncertainty would impose even more stress not only on the IRS, but also on the entire tax community, including tax professionals, software providers, and tax volunteers, who are all critical to the successful operation of our nation’s tax system,” Koskinen wrote in a letter to Oregon Democratic Senator and Senate Finance Committee Chairman Ron Wyden.
“If Congress waits until 2015 and then enacts retroactive tax law changes affecting 2014, the operational and compliance challenges would be even more severe — likely resulting in service disruptions, millions of taxpayers needing to file amended returns, and substantially delayed refunds.”
Congress is scheduled to return to Washington Nov. 14 after the mid-term elections.
Here is a question: if the IRS is delaying giving Americans back their own money then can taxpayers delay when they can file their tax returns or when they pay the United States government? Knowing the IRS, it’s rather unlikely.
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