The IRS is missing its own deadline. Thanks to a late resolution to the fiscal cliff crisis, tax filing season is starting two weeks late.
The IRS will start processing tax returns on January 30th, instead of the usual January 16th. It needs the extra time to finish updating forms and systems, so that everything is in line with the tax law changes Congress enacted on January 2nd.
Taxpayers relying on early refunds will have to adjust their budgets for the delay. Licensed Tax Consultant Connie M. Morris said, "They have two to three children. Don't have a lot of income. They get that Earned Income Credit. It could be worth up to six thousand dollars. That's a good chunk of an annual budget for somebody in that income level. they're going to be delayed in receiving that."
The IRS says the majority of taxpayers should be able to start filing January 30th. Others with more complicated returns, which may include things like claiming residential energy credits or general business credits, will have to wait until late February or March to file. That's because the IRS is still working on those forms and processing changes.
Morris said the quickest way to get your refund is to file electronically and have your refund deposited directly into your bank account. She adds, "You do not want a check mailed to you if you can avoid that." Typically receiving a check takes about a week longer than direct deposit.
Even though the starting date to file is two weeks later than normal, the tax filing deadline is still April 15th.