As if the late start to the
season and the changing tax laws weren’t enough to confuse taxpayers this year,
there’s a new potential issue on the horizon – sequestration. What does this mean for you? If
you still haven’t filed your 2012 taxes, you’re likely to see delays if you
file after March 1. Let’s look at why.
“Sequester, or sequestration, is
the term for the general cut in government spending coming soon,” said Mark. “Due
to the Budget Control Act of 2011, Congress has to complete and approve a
budget by January 1, 2013 (this has since been extended to February 28, 2013),
or the government will immediately cut spending and put staff on a leave of
absence, or personnel layoffs, across all areas of the federal government. The
spending cuts and personnel layoffs will affect programs in the IRS, such as
the taxpayer call center, taxpayer outreach programs and the IRS’s ability to rapidly
respond to issues in the current tax season. The cuts won’t affect normal
e-file return processing. So if you prepare your own return and need help (a
common occurrence for self-prepared returns) or if the IRS reviews your return,
you will see delays after March 1.”
It’s always a best practice to
file your return as soon as you have all of your documentation to avoid
troubles like identity theft, but now, more than ever, you will want to file
sooner than later. Plus, with the tax law changes this year, you’ll want to
work with a professional tax preparer, especially if you file after March 1, to
help avoid common errors and further delays to your return if you’re due one.