The Internal Revenue Service is warning it might have to delay tax-filing season — and refunds — again if Congress doesn’t act soon on expiring tax provisions.
IRS Commissioner John Koskinen warned in a letter to Senate Finance Committee Chairman Ron Wyden dated Monday that “uncertainty” over the fate of more than 50 expiring tax provisions known as “extenders” could “force the IRS to postpone the opening of the 2015 tax filing season and delay the processing of tax refunds for millions of taxpayers” if Congress doesn’t act before the end of November.
Wyden responded to the letter with a statement that “uncertainty from the federal tax code is the last thing American businesses and families need as they look to grow and invest. Congress needs to act swiftly on these important tax provisions so it can get to work on a comprehensive overhaul of the tax code and lift the fog of uncertainty from taxpayers.”
Passing a package of the extenders, which include provisions from tuition and fees deductions for individuals to tax credits for renewable energy, is expected to be one of the top agenda items for Congress when it returns after the midterm elections in November.
Koskinen urged Congress to act quickly after returning, noting that IRS’ planning for the 2015 tax season was already in “full swing.” He also said that tax professionals, software providers and tax volunteers would be affected if the status of the extenders was not resolved by the end of November, and that the IRS would need time to adjust for any tax changes involved in the extenders legislation.
Congressional gridlock has delayed tax filing season more than once recently. The fall 2013 government shutdown set the IRS back by weeks and caused the 2014 filing season to be pushed back. Before that, the “fiscal cliff” at the end of 2012 delayed the 2013 season.
