The 2015 tax season will begin on 20th January. The IRS was apprehensive about the start of the tax season because of the delay by Congress in extending many 2013 tax breaks. Now, after much concern over delays, the IRS has confirmed that the 2015 tax season will begin on time.
The 2014 tax season began late due to the government shutdown that halted IRS operations. This year, the IRS faces uncertainties and new responsibilities, and will be handling increased paperwork due to the Affordable Care Act (ACA) and the tax provisions extended for 2014.
The IRS is also confident of handling the more than 50 temporary tax breaks. IRS Commissioner John Koskinen said in a statement, “We have reviewed the late tax law changes and determined there was nothing preventing us from continuing our updating and testing of our systems. Our employees will continue an aggressive schedule of testing and preparation of our systems during the next month to complete the final stages needed for the 2015 tax season.”
Around the country, taxpayers, tax preparers and accountants were awaiting Congress’ decision on the extensions. Millions of Americans will report their health-care insurance coverage in the upcoming tax season. Those not covered will face penalties. Additionally, taxpayers that receive premiums will need to calculate the amounts accurately. The IRS will need to ensure that the health coverage of each American is figured correctly.
With its budget slashed by $345.6 million, the 2015 tax season will be a challenge for the IRS, and in some respects, for the taxpayers too.