Michael L. Green

Good news on the horizon for tax filers. According to the IRS, following the long awaited January tax law changes made by Congress under the American Taxpayer Relief Act (ATRA), the Internal Revenue Service announced the opening of the 2013 filing season and begin processing individual income tax returns on January 30.

The IRS will begin accepting tax returns on that date after updating forms and completing programming and testing of its processing systems. This will reflect the bulk of the late tax law changes enacted January 2. The announcement means that the vast majority of tax filers — more than 120 million households — should be able to start filing tax returns starting January 30.

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The IRS estimates that remaining households will be able to start filing in late February or into March because of the need for more extensive form and processing systems changes. This group includes people claiming residential energy credits, depreciation of property or general business credits. Most of those in this group file more complex tax returns and typically file closer to the April 15 deadline or obtain an extension.

According to the IRS, the opening date ensures the IRS has the time needed to update and test their processing systems.

The IRS will not process paper tax returns before the anticipated January 30 opening date.

According to the IRS, the opening of the filing season follows passage by Congress of an extensive set of tax changes in the American Taxpayer Relief Act on January 1, 2013, with many affecting tax returns for 2012. While the IRS worked to anticipate the late tax law changes as much as possible, the final law required that the IRS update forms and instructions as well as make critical processing system adjustments before it can begin accepting tax returns.

Who Can File Starting January 30? The IRS anticipates that the vast majority of all taxpayers can file starting January 30, regardless of whether they file electronically or on paper. The IRS will be able to accept tax returns affected by the late Alternative Minimum Tax (AMT) patch, as well as the three major “extender” provisions for people claiming the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction.

Who Can’t File Until Later?

There are several forms affected by the late legislation that require more extensive programming and testing of IRS systems. The IRS hopes to begin accepting tax returns including these tax forms between late February and into March; a specific date will be announced in the near future.

The key forms that require more extensive programming changes include Form 5695 (Residential Energy Credits), Form 4562 (Depreciation and Amortization) and Form 3800 (General Business Credit).

As part of this effort, the IRS will be working closely with the tax software industry and tax professional community to minimize delays and ensure as smooth a tax season as possible under the circumstances.

Because the new tax laws and requirements are still being formulated and the IRS is rushing to change and update IRS paper work, it’s important for tax payers to pay attention to the new changes and requirements. Close communication with your tax preparer will help avoid potential mistakes in the process of doing your taxes. The IRS web site is also a helpful tool and may be found at irs.gov.com.

List of IRS forms that 1040 filers can begin filing in late February or March 2013

The following tax forms will be accepted by the IRS in late February or March after updating forms and completing programming and testing of its processing systems. Specific dates will be listed at irs.gov.com

• Form 3800 General Business Credit
• Form 4136 Credit for Federal Tax Paid on Fuels
• Form 4562 Depreciation and Amortization (Including Information on Listed Property)
• Form 5471 Information Return of U.S. Persons With Respect to Certain Foreign

Corporations

• Form 5695 Residential Energy Credits
• Form 5884 Work Opportunity Credit
• Form 6478 Credit for Alcohol Used as Fuel
• Form 6765 Credit for Increasing Research Activities
• Form 8396 Mortgage Interest Credit
• Form 8582 Passive Activity Loss Limitations
• Form 8834 Qualified Plug-in Electric and Electric Vehicle Credit
• Form 8839 Qualified Adoption Expenses
• Form 8844 Empowerment Zone and Renewal Community Employment Credit
• Form 8864 Biodiesel and Renewable Diesel Fuels Credit
• Form 8874 New Markets Credits
• Form 8903 Domestic Production Activities Deduction
• Form 8908 Energy Efficient Home Credit
• Form 8909 Energy Efficient Appliance Credit
• Form 8910 Alternative Motor Vehicle Credit
• Form 8911 Alternative Fuel Vehicle Refueling Property Credit
• Form 8912 Credit to Holders of Tax Credit Bonds
• Form 8932 Credit for Employer Differential Wage Payments
• Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit

Michael Green of Michael L. Green Tax and Financial is an Enrolled Agent and Certified Financial Planner in Valencia. He can be reached by calling (661) 257-4111 or visit Michael Green’s website.