The 16 day government shutdown hasn’t only delayed tax refunds for those that filed for extensions in 2012. The IRS is now working through a backlog of inquiries and has informed the public that the filing season for the 2013 tax year will be delayed by up to two weeks. This means that the IRS will not begin processing returns until January 28th or as late as February 4th, 2014. What should you do to prepare for this delay?
Why does the IRS need extra time?
The IRS has stated that they need additional time for programming purposes and to test their tax preparation systems. The IRS has also cited a delay as a result of changes to the tax law with the new investment income surtax among other taxes.
What’s more, it’s important to note that the the filing season can still be delayed further. Remember, lawmakers have only temporarily extended the time period to keep the government open. It’s possible, while unlikely that there would be another shutdown. We should have a better idea of the exact target date to file when the IRS provides further guidance at the end of December.
What does this mean for you?
It’s highly unlikely that you will receive your tax refund as quickly as in the years in which there were no tax filing delays. It’s also important to note that you won’t be receiving your refund any quicker if you file your tax return before the IRS starts accepting the returns.
Is there a way to get my tax refund quicker?
Technically, there is still a way. You can adjust your tax withholding now so that you obtain at least part of your refund in advance. You can do so by revising your W-4 form to reduce the amount of withholding taxes necessary. This is done by increasing your allowances.
More tax questions? Browse answers or ask tax questions online. You can also find an accountant online here.
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->Tax Advice For The Looming 2012 Tax Extension Deadline
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->What Should I Do If I Can’t File My Taxes In Time?
->When Should I Start Filing My 2012 Tax Returns?
->Why Is My 2012 Tax Refund Less Than It Was For 2011?
->What Does The Fiscal Deal Mean For Your 2012 & 2013 Taxes?
->Tax Planning Strategies to Mitigate Your Risk for Higher Taxes in 2013
