Expect delays this tax season
Posted On: 2-2-2015 | Posted By: Kathy Graessle, CPA
The IRS opened the 2015 tax filing season on time on January 20, although many returns could not be accepted until this week. Corporations, partnerships, returns with depreciation and individual returns that included itemized deductions could not be E-filed until recently, as the IRS needed additional time to update forms and software following late-December 2014 congressional action regarding the “tax extenders.”
Taxpayers could experience additional delays this year, particularly when expecting refunds or contacting the IRS. That’s because of budget cuts that will force the IRS to do “less with less,” according to IRS Commissioner John Koskinen in a message to all IRS employees.
Koskinen says the $346 million cut in IRS funding in last year’s omnibus spending bill means the agency will have to take measures such as putting staff on unpaid furlough, delaying refunds, cutting enforcement, delaying technology upgrades, cutting overtime and temporary staff budgets, and continuing a hiring freeze.
In addition to experiencing delayed refunds, these actions could mean taxpayers will face long wait times when contacting the IRS to resolve issues, including identity theft related to tax return fraud. Even tax preparers will experience longer wait times in communicating with the agency.
To address these issues, we recommend you file your return as soon as possible and contact your WK advisor immediately if you receive an IRS notice.