Some Forms Still Delayed

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IRS is still delaying some forms - including those to do with Rental losses and Energy Credits. Here is a list of those forms that will start being processed the first week in March at the soonest:

Form 3800 General Business Credit

Form 4136 Credit for Federal Tax Paid on Fuels

Form 5695 Residential Energy Credits

Form 5884 Work Opportunity Credit

Form 6478 Credit for Alcohol Used as Fuel

Form 6765 Credit for Increasing Research Activities

Form 8396 Mortgage Interest Credit

Form 8582 Passive Activity Loss Limitations

Form 8820 Orphan Drug Credit

Form 8834 Qualified Plug-in Electric and Electric Vehicle Credit

Form 8839 Qualified Adoption Expenses

Form 8844 Empowerment Zone and Renewal Community Employment Credit

Form 8845 Indian Employment Credit

Form 8859 District of Columbia First-Time Homebuyer Credit

Form 8864 Biodiesel and Renewable Diesel Fuels Credit

Form 8874 New Markets Credits

Form 8903 Domestic Production Activities Deduction

Form 8908 Energy Efficient Home Credit

Form 8909 Energy Efficient Appliance Credit

Form 8910 Alternative Motor Vehicle Credit

Form 8911 Alternative Fuel Vehicle Refueling Property Credit

Form 8912 Credit to Holders of Tax Credit Bonds

Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit

 

When Will IRS Process Returns

 

You know that, as of January 22nd, we are open and doing tax returns. We electronically send each return which then goes into a holding pattern until officially accepted by IRS January 30th.

On January 23rd the IRS began accepting a limited number of live returns as part of its standard pre-season testing process. This includes issuing acknowledgements for the returns. However, these returns will not be officially processed until January 30.

"Prior to January 30, treat all "Accepted" returns as being accepted on January 30"

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Here are the key points we have received from IRS on this topic:

- The IRS will not process your tax return before January 30.

- This means the timeframe for issuing refunds will not begin before

January 30. The IRS issues most refunds in less than 21 days from the

day they receive your tax return for processing.

- Even though the IRS issues most refunds in less than 21 days, it's

possible your tax return may require additional review and take longer.

- Beginning January 30, you can use the improved Where's My Refund?

tool, which this year will provide personalized information about your

own tax return.

What $350 Million in IRS Budget Cuts Means for Taxpayers

 

(WASHINGTON, DC, January 12, 2015) You may recall that back in December of 2014, Congress passed a spending bill that will fund the government through September of 2015. That’s good, right? No government shut-down. However, this spending bill includes yet another funding haircut for the IRS, which is probably going to make your life a little worse this tax season. By “haircut” we mean roughly $350 million in spending cuts – which even in DC is real money.

 

So, how might that affect you this tax season? Well, for one thing, your odds of getting through to the IRS Help Line while you’re still in your youth have gone from slim to none now that IRS funding has been reduced (once again) to three percent less than last year and $1.5 billion below the president’s requested amount. National Taxpayer Advocate Nina Olson was predicting before the cuts that 2015 would bring us the “worst filing season” in years. No crystal ball is needed to see that administering more than 40 new provisions under the Affordable Care Act for the first time this year is going to call for more IRS staff standing by to answer questions, not fewer.


In December, IRS Commissioner John Koskinen told reporters that in the last four years the IRS budget has been cut by approximately $1.2 billion and its staff reduced by about 13,000. IRS’s $11.3 billion budget for 2014 was seven percent below the level appropriated in 2010. On top of frustrating taxpayers in need of answers, Koskinen predicts that the reductions in staff will result in nearly $2 billion in uncollected revenue this year.

 

If the idea of hanging on hold with the IRS for hours isn’t appealing to you, this may be the year for you to join the nearly 60 percent of U.S. taxpayers who hire a paid preparer. Licensed preparers know the intricate (and constantly changing) tax laws, regulations and codes, and how they can be applied for your benefit to save you money. Enrolled agents, America’s tax experts®, are required to complete IRS-approved annual continuing education, ensuring that they have the most up-to-date strategies to make sure you pay only what you owe and get any refunds you are due. Enrolled agents not only specialize in tax preparation and tax planning, they can also represent you before the IRS. Find an enrolled agent in your area on the “Find an EA” directory at www.naea.org.

 

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