Charlotte NC Tax Filers-IRS Ready to Accept All Tax Returns
As of Monday, February 14, the IRS began accepting e-files for taxpayers that itemize on their tax returns. In a previuous blog post about filing your 2012 taxes, we highlighted how the IRS could not accept tax returns until mid-February.
The delay in processing returns, was a result of a last minute bill passed by Congress and signed into law. The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 became law on December 17, 2011 and had a number of tax law changes. As a result of these changes the IRS had to change and update some of its processes and systems before it could accept certain returns, mostly 1040 returns with an attached schedule A (itemized deductions, such as mortgage interest)
The IRS commissioner, Doug Shulman, issued the following statement regarding the delay in processing tax returns. "We worked hard to update our systems to get the changes in place as quickly as possible. We appreciate the patience of those impacted by the delay. We urge taxpayers to use e-file with direct deposit, and they can get their refunds within days."
Most tax preparers, as we did with our Charlotte, NC tax filers, prepared returns but did not submit them to the IRS until the IRS gave the green light. They did that this week.
However, the IRS did caution taxpayers, that due to the increased volume of tax returns being submitted, tax filers and tax preparers may experience a brief delay in receiving their e-file acknowledgment, which is normally provided in 24-48 hours.
The IRS is now set to receive all tax returns, and will typically turn the refunds around within 1-2 weeks. The state returns are a different story. Many states are facing budget crunches and delaying the processing of refunds. Last year in North Carolina, tax payers had to wait until May and June before receiving NC sate refunds. The sooner you have your tax return prepared and sent in the more quickly you will receive a refund. For NC state filers and other states, where there continues to be a budget crunch, taxpayers expecting a refund should submit their return as soon as possible.