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Most Likely Your Tax Return Will Be Delayed
by Chris Malone,posted Jan 25 2013 7:35AM
While Congress and the President publicly battled over the fiscal cliff, their delay in finding a compromise means your tax return (and potential refund) most likely will be delayed too. The result of the tax law changes for 2012 from the American Taxpayer Relief Act of 2012, passed by Congress at the beginning of January 2013.. Now the IRS is scrambling to modify deductions, exemptions and formulas on its forms. Considering the tax code has significantly more pages than the Bible, its going to take some time and that pushes everything else behind.
So will your tax return be delayed? The IRS will not be able to start processing returns that include depreciation deductions, passive activity losses, residential energy credits and general business credits until late February or early March because of the need for more extensive form and processing systems changes. This includes taxpayers whose Form 1040 includes a Schedule C for self-employment income and Schedule E for rental income and income from “pass-through” business entities.