You Can File Income Tax Returns Now (Maybe)

The IRS announced that they started accepting e-filed tax returns on Friday January 31.  However, I have already found several returns that are being delayed due to the state E filing system not being ready.  This may be due to our software, however, since many state income tax returns are predicated on starting with net income from an IRS return, it makes sense that they may not be ready until the IRS was.

Also, since the IRS did not issue final Regulations regarding the Net Investment Income tax until late in 2013, it has taken extra time for the IRS to update their computer system for the several final changes and then after the IRS has updated their system, it requires a little bit of time for the software providers to get the changes into their system.

Since this is another election year, it would not surprise me that we have several major changes that will need to be programmed into the system late this year or even into 2015.  If this happens, we will now have had at least three consecutive years of delayed tax returns.

At some point, we may see the IRS delaying the original due date to April 30 or even May 15 to reflect all of the extra delays that now seem to crop up every year.  They have already delayed the filing for Form 1099s (which are usually amended once or twice before they are final).

We will  keep you posted.

Paul Neiffer, CPA