IRS Filing Delay for Certain Forms

As usual, the tax filing season for tax year 2010 begins this month for the majority of taxpayers. However, late changes in the law mean the IRS has to reprogram its processing systems for three provisions that were extended in the Act that became law on Dec. 17.

People claiming certain items will need to wait to file their tax returns until tax processing systems are ready, which the IRS estimates will be in mid- to late February.

Taxpayers will need to wait to file if they are within any of the following three categories:

• Taxpayers claiming itemized deductions on Schedule A. Itemized deductions include mortgage interest, charitable deductions, medical and dental expenses as well as state and local taxes. Because of  Congressional action to enact tax law changes, anyone who itemizes and files a Schedule A will need to wait to file until mid- to late February.
• Taxpayers claiming the Higher Education Tuition and Fees Deduction. This deduction for parents and students — covering up to $4,000 of tuition and fees paid to a post-secondary institution — is claimed on Form 8917. However, the IRS emphasized that there will be no delays for millions of parents and students who claim other education credits, including the American Opportunity Tax Credit and Lifetime Learning Credit.
• Taxpayers claiming the Educator Expense Deduction. This deduction is for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250. The educator expense deduction is claimed on Form 1040, Line 23, and Form 1040A, Line 16.
• Taxpayers claiming a Casualty and Theft loss on Form 4684.
• Taxpayers claiming the District of Columbia First-Time Homebuyer Credit on Form 8859

As always, PRO-TAX stands ready to assist you in determining how this delay might affect your particular situation. The IRS will announce a specific date in the near future when it can start processing tax returns affected by the late tax law changes. In the interim we suggest you collect your tax documents and contact the nearest PRO-TAX office.  Click HERE to find locations, or call 1-800-809-2829.

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