IRS Watchdog Warns of 2013 Tax Delay due to Congressional Inaction

According to a report from the Taxpayer’s Advocate Service—the in-house service that assists taxpayers in dealing with the IRS and holds the agency accountable in its bi-yearly reports—there could be a tax delay in 2013 if Congress fails to address major fiscal policy questions soon. Nina Olson, the head of the IRS’ in-house advocate for taxpayer’s rights, remarked in the report that “an aura of uncertainty prevails as the IRS and taxpayers wait for word about what will be the law.”

The uncertainty of which she is referring comes from a slew of policies that have a rapidly approaching end date. The forthcoming expiration date of December 31 for the Bush Tax Cuts is quickly approaching; however, a consciousness of the November 6 elections has stalled Congress’ decision-making.

Further uncertainty stems from the reality that 60 tax breaks expired at the end of 2011 and 41 more are expiring at the end of 2012.

In 2010, last minute congressional action on tax laws forced the IRS to push back the filing start date to February of 2011. The normal start date for return filing is January.

 

Segal, Cohen & Landis
9100 Wilshire Blvd. Ste. 601E
Beverly Hills, CA 90212
(310) 285-3999

Leave a Comment