IRS Commissioner John Koskinen announced today that the IRS will begin accepting income tax returns on January 20th, 2015. Many people expected a later start because of the last minute enactment of the Tax Increase Prevention Act of 2014 which President Obama signed on December 19, 2014. In the past these last minute tax bills have caused delays in the start of tax return processing by the IRS because the IRS’ software required updates.
The Tax Increase Prevention Act of 2014 was enacted to extend 51 federal income tax provisions that had expired on December 31, 2013. The tax provisions extended included the $500,000 limit on the election to expense certain tangible assets in the year the asset was purchased, the 50% bonus depreciation, and certain employment tax credits.
Let’s hope the tax software vendors are ready to rock and roll on January 20th too.