Early Filing – Early Refund? Maybe Not. IRS Expects Delays in 2014 Refunds
The Internal Revenue Service typically opens the tax season the last week of January, and closes it on the 15th day of April. The 2015 tax season is expected to begin January 23, 2015. Why file early? Refunds. Ninety-eight percent of all individuals who file their tax returns in January expect to receive a refund, and with the ability to e-file, most of them expect to receive it quickly. In past years, an individual e-filing their return could expect a refund direct deposited into their bank account approximately twenty-one days later. Not this year. Internal Revenue Service Commissioner John Koskinen is warning of 2015 filing-season disruptions and tax refund delays.
What’s complicating the upcoming filing season? Commissioner Koskinen claims there are several key factors.
- Budget cuts – the House and Senate voted to cut the IRS agency budget for 2015 to a level that is seven percent below 2010 funding levels.
- Tax Extenders – Congress has yet to reinstate dozens of tax provisions that expired at the beginning of 2014. There are more than fifty tax provisions, which include a mix of business provisions, charitable donations, and educational expenses that the House and Senate have not yet agreed to continue. A renewal of the expired tax provisions would give taxpayers the certainty they need to plan their finances. If the issue persists into the month of December, the IRS could be forced to postpone the opening date for 2015 filings, which would delay the processing of tax refunds.
- The Affordable Care Act and The Foreign Account Tax Compliance Act – This will be the first filing season in which the IRS must implement major provisions of both these Acts.
Is there anything good about the 2015 tax season? The IRS has implemented a Where’s My Refund feature. You can get updated information regarding the processing of your refund using Where’s My Refund?, or the IRS mobile app IRS2Go. Information should update every 24 hours.
But even if the processing dates are delayed, you’ll get your refund sooner if you file your return correctly and as soon as possible after the tax season (January 2015) begins.
If you have questions regarding the preparation of your 2014 tax return, the professionals at Nielsen Law Group are ready to assist you. Call (480) 888-7111 or submit a web request here.