Home > Taxes > 2010 Tax Return Delay

2010 Tax Return Delay

The IRS has announced that it will delay the processing of certain 2010 tax returns as a result of the tax legislation passed by Congress on December 16, 2010.  As mentioned in a prior article, there is a cost to business owners and taxpayers for Congress’ delay in reaching a compromise.  You may be thrilled with the tax benefits of the legislation, but you may not be pleased about having to wait to file your 2010 tax return or receive your tax refund.

The following taxpayers are affected by this delay:

  • Anyone who files a Schedule A for itemized deductions
  • Taxpayers claiming a deduction for higher education tuition and fees
  • Teachers claiming a $250 deduction for educational supplies
  • Taxpayers claiming a casualty loss
  • Residents of the District of Columbia claiming a first-time homebuyer credit

The delay is a result of the time it will take the IRS to re-program their computer system to incorporate certain provisions enacted by the bill. The IRS expects to be able to process these returns by the end of February.

According to the IRS, approximately 142 million returns were filed in 2008 (the most recent statistics available), and 48 million taxpayers claimed itemized deductions.  Using these stats, one-third of taxpayers can’t file their return until mid to late-February, even if they have their returns complete.

Granted, many people claiming itemized deductions don’t have all of their information gathered or have their returns prepared by this date.  However, for those who do, this is an added aggravation to an already unpleasant task.

Unfortunately, there isn’t much you can do about it, except to wait and check the IRS website for updates.

There is more bad news.  Since many of the provisions from the tax bill will expire at the end of 2012 (another election year), this whole process will probably be repeated again in two years.  These tax provisions make great campaign fodder, so you can expect Congress to replicate this asinine behavior.  It’s sad commentary that once again, the American taxpayers are paying the price of political posturing.

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  1. Tom
    November 27, 2011 at 2:34 PM

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