Edited and posted by Harold Goedde CPA, CMA, Ph.D.

The IRS announced on January 8, that it plans to open the 2013 tax filing season and begin processing most individual income tax returns on January30, after updating forms and completing programming and testing of its processing systems to account for most of the tax law changes enacted by Congress on  January 2. The IRS says that this will allow “the vast majority of tax filers-more than 120 million households”- to start filing tax returns on January 30. The delayed start applies to both electronic and paper returns.

The IRS said that on January 30, it will also accept tax returns affected by the late change in the alternative minimum tax (AMT) exemption amount as well as three other major extended provisions:

(1) the state and local sales tax deduction (Sec. 164(b));

(2) the higher education tuition and fees deduction (Sec. 222);

(3) the deduction for certain expenses of elementary/secondary schoolteachers (up to $250 per teacher). (Sec. 62).

Some Returns Delayed

Due to the need for more extensive form and processing systems changes, many taxpayers will not be able to file returns until February or March. For example, the IRS says taxpayers who claim residential energy credits or general business credits or who depreciate property will not be able to file starting January 30. The IRS downplayed this delay, claiming that most of these taxpayers  “typically file closer to the April 15 deadline or obtain an extension.”

Forms that will require more extensive programming changes include form 5695-“Residential Energy Credits”, form 4562-“Depreciation and Amortization”, and form 3800-“General Business Credit”.  The IRS will announce a specific date in the near future when it will start accepting these forms. They promised to post on its website a full list of the forms that it will not accept until later. The list was not yet available when this article was published.

[Alistair M. Nevius, editor-in-chief, tax, Journal of Accountancy, on-line ed,  January 8, 2013]

CIRCULAR 230 DISCLOSURE:  Pursuant to regulations governing practice before the  IRS, any tax  advice contained herein is not intended or written to be used and cannot be used by the taxpayer  for the purpose of avoiding tax penalties that may be imposed on the taxpayer.