IRS Delays Filing Times

By Robert Davis
Jan 1 2011

The Internal Revenue Service announced yesterday that millions of US taxpayers will have to wait to file their returns as a new update to the system is necessary.

According to the IRS, the delay is due to the lack of response by Congress regarding the new tax bill. The tax code was changed again this year, cleaning up some tax codes and so on that were incorrect, but the new law was not signed until December 17^th. As such the IRS has not had time to upgrade their system.

The delayed filing status applies only to those taxpayers that will itemize their deductions for the new tax season. According to the latest figures, this will affect some 50 million taxpayers in the US. The delay will mean that those taxpayers who itemize will need to wait until at least February before sending in their returns.

This is a blow to many who are depending on the refunds that they will receive in the coming months. The new tax law allows for more deductions, most of which were included in the massive stimulus bill.

However, the IRS has continuously criticized Congress for their delay in passing the new tax bill. But congressional leaders said that the new tax bill was further delayed over the Bush-era tax cuts that were widely disputed in the halls of Congress.

Republican leaders fought against the new tax law, suggesting that it would further limit the growth of the nation through the taxation plan.