Recent Tax Breaks Delay Filing for Some Taxpayers

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The Tax Relief Act of 2010, which passed in December, extended many expired or expiring tax provisions. However, the Act also resulted in IRS processing delays of certain returns. Some taxpayers' returns will not be processed until mid- to late February when the IRS expects to complete updating their systems to reflect all provisions of the Act.

But not everybody is affected. Only taxpayers who claim the following deductions are impacted:

While both paper and electronic filing (e-filing) are delayed, the IRS is urging taxpayers claiming these three deductions to use e-filing to minimize confusion on the tax law changes and ensure accurate tax returns.

"We will do everything we can to minimize the impact of recent tax law changes on other taxpayers. The IRS will work through the holidays and into the New Year to get our systems reprogrammed and ensure taxpayers have a smooth tax season," said IRS Commissioner Doug Shulman in a release on December 23, 2010.

Whether or not you claim one of these three deductions, you can start and complete your return with any CompleteTax product. All CompleteTax products are up-to-date and include all tax law changes that have been passed by Congress.

If you do claim one of the impacted deductions, CompleteTax will securely hold your federal return until the IRS is ready to accept it. When the IRS is ready, CompleteTax will e-file your return and email you to let you know your federal return has been filed and accepted. State returns are not impacted by this delay, so CompleteTax will e-file your state return normally.

The IRS will be ready to accept returns with these deductions on February 14, 2011.

If you do not claim any of these deductions, then there will be no changes in how your federal return
is e-filed.

Posted January 28, 2011.