Delays In E-Filing of Tax Returns

Due to the slow response of legislation to either extend or eliminate Bush era tax cuts, many taxpayers will have to wait to e-file their returns.  IRS is currently scrambling to update the forms to comply with the recent Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act legislation.  Those forms affected include:

Schedule A, Itemized Deductions

Form 3800, General Business Credit

Form 4684, Casualties and Thefts

Form 5405, First-Time Homebuyer Credit and Repayment of the Credit (Page 2)

Form 6478, Alcohol and Cellulosic Biofuel Fuels Credit

Form 8834, Qualified Plug-in Electric and Electric Vehicle Credit

Form 8859, District of Columbia First-Time Homebuyer Credit

Form 8910, Alternative Motor Vehicle Credit

Form 8917, Tuition and Fees Deduction

Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit

These forms should be ready for e-file by mid to late February.  Taxpayers using commercial software can check with the software provider for specific instructions.  Tax preparers will still be able to prepare the returns, but will not be able to transmit to IRS until the e-file system is in line with the recent changes.  More information is available at www.IRS.gov.

Despite the delay, e-file and direct deposit are still the fastest way to get your refund, without paying the high costs of a refund anticipation loan.  Taxpayers can expect their refunds in typically 8-10 days using e-file and direct deposit, as compared to 4-6 weeks for paper returns submitted by mail.

Disclaimer: This post is intended to provide general information about the subjects posted.  It should no way be construed as tax or financial advisement.