Monday, December 27, 2010

Delay in Filing 2010 Income Tax Returns

As a result of the late passage of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of  2010 (referred to as the 2010 Tax Relief Act), the IRS has stated that there will be a delay in processing many 2010 individual income tax returns.  The 2010 Tax Relief Act made many changes retroactive to January 1, 2010 (i.e. allowing state and local sales tax in lieu of state and local income tax, reinstating the higher education tuition deduction etc.).

The IRS needs to reconfigure its computer program to take these changes into account.  Therefore, they released IR 2010-126 stating that they may not begin processing returns affected by these changes until mid to late February.  They will make a subsequent announcement setting forth the date when their computer programs will start processing those returns.

Our January seminars will focus on all of the retroactive changes that affect the preparation of individual and business returns.

 

Bob

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