The tax filing season is about to start for many taxpayers. However, the day that the IRS will begin processing tax returns has been delayed further due to the last minute tax agreement reached by Congress. When should you file your tax return?
IRS delays processing tax returns
The IRS will not begin processing individual tax returns until January 30th, 2013, which is eight days later than its prior estimate of January 22nd. The late passage of the fiscal cliff legislation is largely to blame for the delay. Now, many of the IRS systems have to be re-calibrated to account for the changes in the tax code. Even more, while almost 122 million taxpayers should be able to have their tax returns processed by the IRS on January 30th, some may be delayed further. Specifically, taxpayers with residential energy credits, depreciation and general business credits will have to wait until late February or March for their returns to be processed.
When should I start filing?
Most accountants will still prepare your tax return now, even though the IRS cannot process it. The tax software providers will also accept tax returns now, however, the IRS will also not process those returns. So, should you file now? The most important piece of advice we have is to make sure you have all of your tax documentation (i.e. 1099s, W-2s, K-1 forms) before you even consider filing. If you do, you could file your tax return now, but it doesn’t really serve much purpose since the IRS will not process the return.
When can I expect to receive my tax refund?
You will not receive your tax refund any sooner than 7 to 10 business days after you e-file your tax return. If you paper file your tax return, it could be a few weeks, if not longer. This is another reason why it doesn’t necessarily serve any purpose to file your tax return prior to the January 30th processing date. The earliest you are able to receive your federal tax refund would be February 8th, 2013.
More tax questions? Browse answers or ask 2012 tax questions online.
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