Absence of Tax Forms Delays Filings
The IRS announced in January that there will be a delay in the release of 31 tax forms due to the late enactment of tax legislation, the need to update the forms, and the need to test processing systems. Two of the 31 forms have since been released, however, the delay of the remaining forms has many tax preparers frustrated and several of them have recently expressed their concern to the IRS.
A primary concern for tax preparers is the inability to prepare business returns due on March 15. Many businesses will need to file for an extension. And even though individual income tax returns and first quarter estimated tax payments are not due until April 15, the amount of time taxpayers and their accountants have to gather all necessary information will be compressed and may also result in the need for many extensions.
In addition to extensions, fees and penalties that are associated with late filing are also a concern. Many have asked the IRS to consider suspending such fees unless delinquencies have a reasonable cause for penalty. While this is all hard for a tax preparer to accept, it’s much harder for a taxpayer to understand why they many have to pay a fee for something of which they have no control.
A list of those forms that require additional programming and have not yet been released, as well as the time frame in which they are expected to be approved, can be found on the IRS website.
By Kennya Hoffart, Industry Writer