Due to Late Congress Decisions, Millions of Taxpayers Will Have to Delay Filing

IRS processing systems have to be re programed due to last minute decisions made by Congress. This reprogramming will take until mid- to- late February. Because of this, around 50 million taxpayers will have to stall in filing their taxes. This was announced on December 23.

Not every taxpayer will be affected. This delay will only affect those who itemize their deductions instead of claiming the standard deduction. It is estimated that one-third of US taxpayers will be affected. However, because not everyone files early in the tax season, many taxpayers will be able to file their taxes just as they normally would.

According the IRS Commissioner Doug Shulman, the IRS will be working "through the holidays and into the New Year" to speed up the reprogramming process.

The delay, which will affect both electronic and paper itemized filing on Form 1040 Schedule A, is caused by a bill that was signed into law on December 17, 2010. The bill promises no changes to federal income tax rates. It also includes college tuition, teacher expenses, and state and local sales tax deductions.

The college tuition deduction is for students claiming deductions on up to $4,000 in tuition. This will be claimed on Form 8917.

The new deduction for teacher expenses is the Educator Expense Deduction. This covers up to $250 of out-of-pocket expenses for grade school teachers.

Another change included in the bill is that Florida residents will be able to claim sales tax in itemized filing.

Although you can work on your taxes before the reprogramming is complete, it is advised not to send in the completed forms until the IRS says they are ready.

However, TurboTax stated that its customers are able to turn in completed e-filings beforehand, and they will hold onto them until the IRS is ready.

The April 15 filing deadline will remain the same.

"50 million Taxpayers Must Delay Filing" CNN