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Updated: 9:53 p.m. Wednesday, Jan. 5, 2011 | Posted: 9:52 p.m. Wednesday, Jan. 5, 2011
By Kelly Mori
Staff Writer
SPRINGFIELD — Taxpayers who itemize deductions or expect to take advantage of other recently passed tax breaks will have to wait until at least mid-February to file their returns, the IRS announced this week.
Changes in the tax laws enacted by Congress and signed by the President Obama in late December gave insufficient time for the IRS to reprogram its processing system before filing begins. That means taxpayers who usually begin filing their taxes early January will have to sit tight while the changes are implemented.
Individuals who claim standard deductions and do not expect to qualify for the tax breaks are not affected by the change and can file their claims as early as Jan. 14.
Individuals who will need to wait include taxpayers who itemize deductions as well as those who will claim the Higher Education Tuition and Fees Deduction and/or the Educator Expense Deduction, said Alex Anderson, CEO of Springfield-based Laird’s Tax and Financial Services. Other affected credits or deductions include the first-time home buyer credit or repayment and those related to the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act.
A number of other credits, such as for electric vehicles and biofuels, also apply, he said.
Laird’s, which has 12 offices in the Springfield/Columbus/Dayton area, has a number of clients who file in early January, Anderson said, “especially those who know they are getting a refund.”
They must now wait until the IRS announces when filing may begin.
“I’m sure it’s going to create quite a bottle neck in the month of February and March,” he said.
The tax filing deadline has also be changed from April 15 to April 18 to allow for the observance of Emancipation Day. The holiday, which is observed by the District of Columbia, falls on April 15 this year.
The IRS expects to receive more than 140 million individual tax returns this year. The agency is urging taxpayers to use e-file “to ensure accurate tax returns and get faster refunds.”
Contact this reporter at (937) 328-0347.
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