Unintended Consequences

As a result of Congress waiting until the last minute to pass the American Taxpayer Relief Act, certain individual taxpayers will have to wait a bit longer than past years to file their income tax returns.

Yesterday the IRS announced that they would begin processing 2012 income tax returns for most individuals on January 30, 2013. However, due to time required for programmers to program tax law changes into their software, many individuals will have to wait until late February or early March to file their income tax returns.

Taxpayers that will have to wait until later in the filing season include individuals that have passive activity losses, depreciation deductions, and general business tax credits. Also taxpayers claiming the domestic production activity credit and the residential energy tax credit will be affected.