Tax Filing Delay Again

Another Delay In Tax Filing & Getting Your Refund? Sure Looks Like It

Delay in tax filing againOnce again, there may be a delay in the beginning of tax filing, this time for the 2013 tax season. The IRS has stated that the reason for this delay is because Congress has not approved another patch for the Alternative Minimum Tax (AMT). If new legislation isn’t passed to correct this, taxpayers may experience significant delays, because of the time required by the IRS to have their computers reprogrammed.

The Acting Commissioner of the IRS, Steven Miller, sent a letter to Representative Sander Levin, a member of the House Ways and Means Committee, in response to requests made by certain representatives. They wanted to know what the IRS was doing in their preparation for the 2013 tax filing season. The Acting Commissioner’s response focused on two individual issues, both that would result in delays of processing tax returns. The first issue addressed was the required patch for the Alternative Minimum Tax, and the second was regarding the revival of expired tax deductions to be made effective for the 2012 tax year, known as the tax extenders.

The most challenging to taxpayers and the IRS is the AMT patch. Mr. Miller stated that an additional 28 million taxpayers would be ensnared by the AMT for the 2012 tax year than in the previous year. Based on the thresholds reflected in the current law, the 2012 levels would revert to $33,750 for an individual and $ 45,000 for married taxpayers filing a joint return.

With those reduced levels, approximately 33 million taxpayers would be subject to and paying the AMT for 2012, and would not be tax filing until the end of March 2013. If the exemption amounts are not increased, approximately 28 million additional taxpayers will feel the sting of the AMT bite into their wallets, plus the major delay in filing their tax returns.

If the exemption amounts and the ordering rules of any special tax credits are approved before the end of 2012, then there is a strong possibility that there would only be minor delays in the start of the 2013 tax filing season. Mr. Miller further stated that only minimal reprogramming would be required for the AMT patch if it were approved.

If the AMT patch and tax credit ordering rules are allowed to expire, then the IRS would need to notify approximately sixty million taxpayers to advise them that they couldn’t file their tax returns or receive any refunds until the programming changes were made. This tax filing delay could be as late as the end of March because of the complexity and amount of programming required.

On the issue of the tax extenders, the Acting Commissioner stated that if those provisions are included in the new legislation, there could be a delay of about one month in filing. This has happened several times in the past, and as recently as the 2011 tax filing season.

Congress extended various provisions for the 2010 tax year that resulted in a delay of the start of the 2011 tax filing season for approximately 9 million taxpayers. The Acting Commissioner went on to say that because of late enactment of the tax extenders in 2012, there would again be a delay in filing for a substantial number of taxpayers.

He stated that this would be an inconvenience, but would only be a minimal risk to the tax filing season. Back in 2007, the IRS was scrambling at the last minute because of an extension of certain tax deductions that had expired. The extension was approved and signed by the president on December 20, 2006, yet it still resulted in problems with forms that had a Schedule A attached for the 2007 tax filing season.

As of the writing of this article, December 2012, Congress and the President can’t agree on a budget or any of the tax extenders. They haven’t even discussed the AMT patch. Washington is likened to a “ghost town” as far as politicians are concerned. They have all left for Christmas vacation and by the time they return, very few days will be left in this year.

Am I the only one here that can see this broken system and the need to fix it? I admit that I’ve been critical of the IRS on various issues, but in their defense, I would hate to be in their shoes trying to function under these conditions. They constantly have to put out fires started by a group of self serving ego maniacs who frequently act like a group of spoiled children.

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Bard
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Bard

I got to say the system is quite inefficient when it comes to tracking all the tax payments and being overly dependent on all their departments. They should stop approving all these ridiculous tax extension requests, or at the very least implement a rule that can be agreed upon once and for all!

Gibbs
Guest
Gibbs

Even though we dislike the IRS for obvious reasons, I can sometimes feel for them as the amount of work they have to put in to satisfy all these increasingly demanding taxpayers can be ludicrous. Not many people can understand how much trouble these insatiable taxpayers are putting them in.

ed pierce
Guest
ed pierce

I agree with Gibbs. And I still can’t understand why the politicians get a Christmas break when there is so much work still to be done. They left an entire nation hanging over an alleged “fiscal cliff” while they relaxed and took vacations on us.

Mixie
Guest
Mixie

It’s highly ironic that we taxpayers have to pay such high penalties for not paying our taxes early, and even more for filing late, yet these guys get to drag their heels all year long. They are so out of touch!

Mandy Allen
Guest

I’m with Mixie here, I can’t believe how lax governments are about getting things done in the proper time frame when the rest of us get penalised for the same offences. Makes my blood boil!

Mandy

Gordon
Guest
Gordon

This would make so much more sense if they simply done a flat tax. All the laws and loopholes in the current tax code is ridiculous and plainly biased towards higher earning people

Ruth Martin
Guest

I agree with many of the other comments here – I feel that the way the system is run, (although I am sure there are a lot of headaches for them to deal with that we never know of), is quite atrocious, and makes me wonder how these guys ever got the jobs they are in when they end up making such a mess of things!

Meli Jovanovich
Guest
Meli Jovanovich

I won’t pretend to understand all the delays in filing and the massive number of changes that come about every year. I’d love to save the money I spend to have my tax filing prepared and submitted for me but I would be lost and I am sure not claim all of the deductions I am entitled too. Your article shed some light on the deal y issue for me, but I have to admit I am still not 100% clear on all of this. I am not saying you didn’t explain it well, I’m just admitting that I am… Read more »

Ryan
Guest
Ryan

I am fed up with all the tax junk that is just too difficult. It needs to be made easier to understand an they have to stop thinking it’s their money. And that no one should have to do all the work necessary just to find out all the credits they can take.

Brandy Oliver
Guest

UGH! I don’t even want to get started on the Government! I am probably going to make some enemies here, but I really am in favor of a flat tax. It would do away with so much drama and junk from the Governments side, and we the people won’t have to deal with such a mess each year. Really, I don’t even think half the lawmakers understand this tax junk they supposedly work with and on so often. I don’t even think the IRS knows, and it would be kind of neat if they would just kinda sorta disappear! I… Read more »

Frank Squal
Guest
Frank Squal

I hate filing taxes especially because they make it so much harder than it has to be. I feel like the middle class are always the ones to be screwed and then this year no one was able to file their taxes till much later which is ridiculous in my books.