IRS E-file launched today; Most Taxpayers will still have to wait to file


The Internal Revenue Service opened its 21st season of electronic filing today with a reminder that e-file remains the best way to get fast refunds and ensure accurate tax returns, particularly following several tax law changes that took place in December.

If you itemize your deductions by using Schedule A, can claim the higher education tuition and fees deduction or can claim the educator expense deduction, you must wait a few more weeks to file your returns.

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act extended a number of tax deductions and credits for 2011 and 2012 such as the American Opportunity Tax Credit and the modified Child Tax Credit, which help you pay for college and other child-related expenses. These changes mean that the IRS needs to reprogram its processing systems for these provisions.

The Act also provides various job creation and investment incentives including 100 percent expensing and a two-percent payroll tax reduction for 2011. Those changes have no effect on the 2010 Tax Returns that will be filed this year.

Although the IRS has announced this delay, you will still want to get a head start on filing your tax return.  You can call our office now to get your ideal tax appointment slot! Tax returns that are electronically filed will be held in a cue and immediately released when the IRS opens the e-file system.

If you have any questions regarding what affects this may have on you, please give us a call.