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Congressional action forces delay in tax returns

8:12 AM, Jan 30, 2013   |    comments
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KUSA - On Wednesday, the IRS will start accepting 2012 tax returns filed electronically - an eight-day delay because of late action by Congress to avoid the so-called "fiscal cliff."

This delay is making refund checks come in later than most people are accustomed to.

"If you ran up credit-card debt to cover your holiday spending, you're not going to have that tax refund to cover that payment that came in January," Fran Coet, a certified public accountant, said.

Coet says some household budgets are especially squeezed by this delay, because the FICA tax rate increased by 2 percent at the start of the year, shrinking paychecks.

And while simple, electronic returns can be filed starting Wednesday, Coet says people with more complicated returns won't be able to file next month at the earliest.

"Anyone who has a business, who has deprecation, who's claiming an education credit - or a plethora of other credits - will not be able to file until either mid-February or early March," Coet said.

She also says it may take Uncle Sam longer to issue refunds this year because the IRS is focusing on preventing identity theft and insuring all refunds are issued to the correct tax payer.

(KUSA-TV © 2013 Multimedia Holdings Corporation)

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